| Significant Accounting Policies | Note 2 - Significant Accounting Policies Basis of Presentation The condensed financial statements of the Company
have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and
considering the requirements of the United States Securities and Exchange Commission (“SEC”). The Company has a fiscal year
with a June 30 year end. In the opinion of management, the condensed financial
statements of the Company as of September 30, 2024 and 2023 and for the three months ended September 30, 2024 and 2023 include all adjustments
and accruals, consisting only of normal, recurring accrual adjustments, which are necessary for a fair presentation of the results for
the interim periods. These interim results are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally
included in condensed financial statements prepared in accordance with GAAP have been condensed in or omitted from this report pursuant
to the rules and regulations of the SEC. These condensed financial statements should be read together with the financial statements and
notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024. Going Concern The accompanying condensed financial statements
have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization
of assets and the satisfaction of liabilities in the normal course of business. The Company is developing its customer base and
has not completed its efforts to establish a stabilized source of revenue sufficient to cover its expenses. The Company has had a history
of net losses and negative cash flows from operating activities since inception and expects to continue to incur net losses and use cash
in its operations in the foreseeable future. The assessment of the Company’s ability
to meet its future obligations is inherently judgmental, subjective and susceptible to change. Based on their current forecast, management
believes that it may not have sufficient cash and cash equivalents to maintain the Company’s planned operations for the next twelve
months following the issuance of these condensed financial statements. The Company has considered both quantitative and
qualitative factors that are known or reasonably known as of the date of these condensed financial statements are issued and concluded
that there are conditions present in the aggregate that raise substantial doubt about the Company’s ability to continue as a going
concern. In response to the conditions, management plans include generating cash by completing financing transactions, which may include
offerings of common stock. However, these plans are subject to market conditions, and are not within the Company’s control, and
therefore, cannot be deemed probable. There is no assurance that the Company will be successful in implementing their plans. As a result,
the Company has concluded that management’s plans do not alleviate substantial doubt about the Company’s ability to continue
as a going concern. The condensed financial statements do not include any adjustments relating to the recoverability and classification
of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Use of Estimates The preparation of condensed financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the condensed financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all investments with an
original maturity of three months or less when purchased to be cash equivalents. The total amount of bank deposits (checking and savings
accounts) insured by the FDIC at the period ended September 30, 2024 was $250,000. Property and Equipment Property and equipment are recorded at cost. The
straight-line method is used for computing depreciation and amortization. Assets are depreciated over their estimated useful lives. The
cost of leasehold improvements is depreciated (amortized) over the lesser of the length of the related leases or the estimated useful
lives of the assets. Costs of maintenance and repairs are charged to expense when incurred. Depreciable Life - Years Leasehold improvements Shorter of estimated lease term or 10 years Furniture and fixtures 7 years Computer equipment and software 5 years Capitalized Software Costs The Company capitalizes costs incurred in the development of software
for its customers, including the costs of the software, materials, consultants, and payroll and payroll related costs for employees incurred
in developing computer software. Software development projects generally include three stages: the
preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain
costs are expensed as incurred) and the post-implementation/operation stage (all costs are expensed as incurred). Capitalization of costs
requires judgment in determining when a project has reached the application development stage, the proportion of time spent in the application
development stage, and the period over which we expect to benefit from the use of that software. Once the software is placed in service,
these costs are amortized on the straight-line method over the estimated useful life of the software, which is generally three years.
Three Months Ended
September 30
2024 2023
Beginning capitalized software $ 3,993,691 $ 3,618,990
Additions 148,000 65,200
Ending capitalized software $ 4,141,691 $ 3,684,190
Beginning accumulated amortization $ 3,348,863 $ 2,840,545
Amortization expense 111,939 146,020
Ending accumulated amortization $ 3,460,802 $ 2,986,565
Capitalized software - net $ 680,889 $ 697,625 Amortization
expense for the three months ended September 30, 2024 and 2023 was $111,939 and $146,020, respectively and included as part of “Technology
and content development” in the Statements of Operations. Revenue Recognition We generate our revenue from contractual arrangements with businesses,
colleges and universities to provide a comprehensive platform of integrated technology and technology enabled services related to product
offerings. During the three months ended September 30, 2024 and 2023, we recognized revenue from contracts with customers of $11,250 and
$63,333, respectively, related to services provided over time. Performance Obligations and Timing of Recognition A performance obligation is a promise in a contract
to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance
obligation and recognized as revenue when, or as, the performance obligation is satisfied. This performance obligation is satisfied as the
partners receive and consume benefits, which occur ratably over the contract term. Occasionally, we provide professional services, such as custom development,
non-complex implementation activities, training, and other various professional services. We evaluate these services to determine if they
are distinct and separately identifiable in the context of the contract. In our contracts with customers that contain multiple performance
obligations as a result of this assessment, we allocate the transaction price to each separate performance obligation on a relative standalone
selling price basis. Standalone selling prices of our solutions and services are typically estimated based on observable transactions
when the solutions or services are sold on a standalone basis. When standalone selling prices are not observable, we utilize a cost-plus
margin approach to allocate the transaction price. We also receive fees that are fixed in nature,
such as annual license and maintenance charges, in place of or in conjunction with variable consideration. The fees are recognized ratably
over the service period of the contract that the Company’s platform is made available to the customer (i.e., the customer simultaneously
receives and consumes the benefit of the software over the contract service period). For the three months ended September 30, 2024
and 2023, all revenue recognized has been recognized over the related contract periods. For the three months ended September 30, 2024,
one customer represents 100% of total revenue. Accounts Receivable, Contract Assets, and Deferred
Liabilities Balance sheet items related to contracts consist
of accounts receivable (net), contract assets, and deferred liabilities on our condensed balance sheets. Accounts receivable is stated
at net realizable value, and we utilize the allowance method to provide for doubtful accounts based on management’s evaluation of
the collectability of the amounts due. Our estimates are reviewed and revised periodically based on historical collection experience and
a review of the current status of accounts receivable. Historically, actual write-offs for uncollectible accounts have not significantly
differed from prior estimates. There was no allowance for doubtful accounts on accounts receivable balances as of September 30, 2024 or June
30, 2024. We may recognize revenue prior to billing a customer
when we have satisfied or partially satisfied our performance obligations as billings to our customers may not be made until after the
service period has commenced. As of September 30, 2024 and June 30, 2024 we do not have any such contract assets. Deferred liabilities as of each balance sheet
date represent the excess of amounts billed or received as compared to amounts recognized in revenue on our condensed statements of operations
as of the end of the reporting period, and such amounts are reflected as a current liability on our condensed balance sheets as deferred
revenue. We generally receive payments prior to completion of the service period and our performance obligations. These payments are recorded
as deferred liability until the services are delivered or until our obligations are otherwise met, at which time revenue is recognized. Some contracts also involve annual license fees, for which upfront
amounts are received from customers. In these contracts, the license fees received in advance of the platform’s launch are recorded
as deferred liabilities. The following table provides information on the
changes in the balance of deferred liabilities:
Three Months Ended
Deferred Revenue September 30
2024 2023
Opening balance $ 0 $ 53,948
Plus billings 35,625 33,750
Less revenue recognized (11,250 ) (63,323 )
Closing balance $ 24,375 $ 24,375 Revenue recognized during the three months ended
September 30, 2024 and 2023 that was included in the deferred revenue balance that existed in the opening balance of each year was approximately
$0 and $26,250, respectively. The deferred revenue balance as of September 30, 2024 is expected to
be recognized over the next 7 months. Stock-Based Compensation We have issued four types of stock-based awards
under our stock plans: stock options, restricted stock units, deferred stock units, and stock warrants. All stock-based awards granted
to employees, directors and independent contractors are measured at fair value at each grant date. We rely on the Black-Scholes option
pricing model for estimating the fair value of stock-based awards granted, and expected volatility is based on the historical volatility
of the Company’s stock prices. Stock options generally vest over two years from the grant date and generally have ten-year contractual
terms. Restricted stock units generally have a term of 12 months from the closing date of the agreement. Stock warrants issued have a
term of five years. Information about the assumptions used in the calculation of stock-based compensation expense is set forth in
Note 3 in the Notes to Condensed Financial Statements. Technology and Content Development Technology and content development expenditures
consist primarily of personnel and personnel-related expense and contracted services associated with the maintenance of our platform as
well as hosting and licensing costs and are charged to expense as incurred. It also includes amortization of capitalized software costs
and research and development costs related to improving our platform and creating content that are charged to expense as incurred. Fair Value Measurements Accounting standards require certain assets and
liabilities be reported at fair value in the condensed financial statements and provide a framework for establishing that fair value.
The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure
fair value. Fair values determined by Level 1 inputs use quoted
prices in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs use other
inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities
in active markets and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including
inputs that are available in situations where there is little, if any, market activity for the related asset. These Level 3 fair value
measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar
techniques. In instances wherein inputs used to measure fair
value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on
the lowest level input that is significant to the valuation. The Company’s assessment of the significance of particular inputs to
these fair value measurements requires judgment and considers factors specific to each asset or liability. Income Taxes A current tax liability or asset is recognized
for the estimated taxes payable or refundable on tax returns for the year. Deferred tax liabilities or assets are recognized for the estimated
future tax effects of temporary differences between financial reporting and tax accounting. Deferred tax assets are reduced by a valuation
allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the
statement of operations in the period that includes the enactment date. Net Loss per Share At September 30, 2024 and June 30, 2024, the Company had 636,577 and
633,000 potentially dilutive shares of common stock related to common stock options and warrants, respectively, as determined using the
if-converted method. For the three months ended September 30, 2024 and 2023, the dilutive effect of common stock options and common stock
warrants has not been included in the average shares outstanding for the calculation of net loss per share as the effect would be anti-dilutive
as a result of our net losses in these periods. Subsequent Events The Company evaluated subsequent events through
the date of this Form 10-Q and has determined that no events have occurred that would require recognition or disclosure in the condensed
financial statements. Risks and Uncertainties The Company operates in an industry subject to
rapid change. The Company’s operations will be subject to significant risk and uncertainties including financial, operational, technological,
and other risks associated with an early-stage company, including the potential risk of business failure. |
