Cover
Cover | 3 Months Ended |
Sep. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | THE GLIMPSE GROUP, INC. |
Entity Central Index Key | 0001854445 |
Entity Tax Identification Number | 81-2958271 |
Entity Incorporation, State or Country Code | NV |
Entity Address, Address Line One | 15 West 38th St |
Entity Address, Address Line Two | 9th Fl |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10018 |
City Area Code | 917 |
Local Phone Number | 292-2685 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
ASSETS | |||
Cash and cash equivalents | $ 12,567,632 | $ 1,771,929 | $ 1,034,846 |
Accounts receivable | 599,879 | 626,244 | 214,673 |
Deferred costs | 45,981 | 29,512 | 237,745 |
Pre-offering costs | 470,136 | ||
Prepaid expenses and other current assets | 533,782 | 281,047 | 468,747 |
Total current assets | 13,747,274 | 3,178,868 | 1,956,011 |
Other assets | 80,000 | ||
Equipment, net | 53,513 | 42,172 | 41,224 |
Intangible assets, net | 479,167 | ||
Goodwill | 250,000 | 0 | 0 |
Total assets | 14,609,954 | 3,221,040 | 1,997,235 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||
Accounts payable | 112,687 | 381,510 | 121,508 |
Accrued liabilities | 136,975 | 168,745 | 118,634 |
Accrued bonuses | 288,388 | 440,357 | |
Accrued legacy acquisition expense | 500,000 | 1,250,000 | |
Deferred revenue | 114,055 | 98,425 | 330,362 |
Total current liabilities | 1,152,105 | 2,339,037 | 570,504 |
Long term liabilities | |||
Paycheck Protection Program (PPP 1) loan | 548,885 | ||
Paycheck Protection Program (PPP 2) loan | 623,828 | 623,828 | |
Convertible promissory notes, net | 1,429,953 | 1,183,535 | |
Total liabilities | 1,775,933 | 4,392,818 | 2,302,924 |
Commitments and contingencies | |||
Stockholders’ Equity (Deficit) | |||
Preferred Stock, par value $0.001 per share, 20 million shares authorized; 0 shares issued and outstanding | |||
Common Stock, par value $0.001 per share, 300 million shares authorized; 7,579,285 and 7,035,771 issued and outstanding | 10,292 | 7,580 | 7,036 |
Additional paid-in capital | 36,595,898 | 20,936,050 | 15,710,996 |
Accumulated deficit | (23,772,169) | (22,115,408) | (16,023,721) |
Total stockholders’ deficit | 12,834,021 | (1,171,778) | (305,689) |
Total liabilities and stockholders’ deficit | $ 14,609,954 | $ 3,221,040 | $ 1,997,235 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, shares issued | 10,291,638 | 7,579,285 | 7,035,771 |
Common stock, shares outstanding | 10,291,638 | 7,579,285 | 7,035,771 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Total Revenue | $ 1,022,533 | $ 259,927 | $ 3,421,495 | $ 1,945,315 |
Cost of goods sold | 145,387 | 137,124 | 1,461,210 | 1,137,193 |
Gross Profit | 877,146 | 122,803 | 1,960,285 | 808,122 |
Operating expenses: | ||||
Research and development expenses | 989,384 | 736,750 | 3,183,055 | 2,430,752 |
General and administrative expenses | 779,729 | 335,998 | 2,220,811 | 1,835,147 |
Sales and marketing expenses | 504,687 | 289,476 | 1,267,088 | 1,462,701 |
Total operating expenses | 2,273,800 | 1,362,224 | 6,670,954 | 5,728,600 |
Net loss from operations before other income (expense) | (1,396,654) | (1,239,421) | (4,710,669) | (4,920,478) |
Other income (expense) | ||||
Forgiveness of Paycheck Protection Program (PPP1) loan | 548,885 | |||
Other income | 10,000 | 10,000 | ||
Interest income | 19,623 | 534 | 6,202 | 8,583 |
Interest expense | (48,437) | (180,641) | (81,455) | |
Loss on conversion of convertible notes | (279,730) | (515,464) | ||
Legacy acquisition expense | (1,250,000) | |||
Total other expense, net | (260,107) | (37,903) | (1,381,018) | (72,872) |
Net Loss | $ (1,656,761) | $ (1,277,324) | $ (6,091,687) | $ (4,993,350) |
Basic and diluted net loss per share | $ (0.17) | $ (0.18) | $ (0.84) | $ (0.72) |
Weighted-average shares used to compute basic and diluted net loss per share | 9,967,821 | 7,039,928 | 7,259,249 | 6,923,506 |
Software Sercices [Member] | ||||
Revenue | ||||
Total Revenue | $ 804,718 | $ 187,652 | $ 3,082,528 | $ 1,777,447 |
Software License [Member] | ||||
Revenue | ||||
Total Revenue | $ 217,815 | $ 72,275 | $ 338,967 | $ 167,868 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Jun. 30, 2019 | $ 6,861 | $ 12,497,228 | $ (11,030,371) | $ 1,473,718 |
Beginning Balance, Shares at Jun. 30, 2019 | 6,860,246 | |||
Sales of common stock to investors | $ 1 | 6,999 | 7,000 | |
Sales of common stock to investors, Shares | 1,556 | |||
Common stock issued to vendors for compensation | $ 24 | 101,475 | $ 101,499 | |
Common stock issued to vendors for compensation, Shares | 23,681 | |||
Common stock issued for exercise of options, shares | ||||
Stock option-based compensation expense | 2,288,258 | $ 2,288,258 | ||
Stock option-based board of directors expense | 167,055 | 167,055 | ||
Net loss | (4,993,350) | (4,993,350) | ||
Ending balance, value at Jun. 30, 2020 | $ 7,036 | 15,710,996 | (16,023,721) | (305,689) |
Ending Balance, Shares at Jun. 30, 2020 | 7,035,771 | |||
Common stock issued to convertible promissory note holders for prepaid interest | $ 57 | 257,837 | 257,894 | |
Common stock issued to convertible promissory note holders for prepaid interest, Shares | 57,234 | |||
Common stock issued to convertible promissory note holders as additional consideration | $ 45 | 173,726 | 173,771 | |
Common stock issued to convertible promissory note holders as additional consideration, Shares | 44,506 | |||
Common stock issued to satisfy contingent liability | $ 20 | 91,735 | 91,755 | |
Common stock issued to satisfy contingent liability, Shares | 20,390 | |||
Common stock issued to employees as compensation | $ 28 | 126,683 | 126,711 | |
Common stock issued to employees as compensation, Shares | 28,158 | |||
Sales of common stock to investors | $ 2 | 10,818 | 10,820 | |
Sales of common stock to investors, Shares | 2,423 | |||
Common stock issued to vendors for compensation | $ 7 | 29,993 | $ 30,000 | |
Common stock issued to vendors for compensation, Shares | 6,667 | |||
Common stock issued for exercise of options, shares | ||||
Stock option-based compensation expense | 772,635 | $ 772,635 | ||
Stock option-based board of directors expense | 41,532 | 41,532 | ||
Net loss | (1,277,324) | (1,277,324) | ||
Ending balance, value at Sep. 30, 2020 | $ 7,045 | 16,565,974 | (17,301,045) | (728,026) |
Ending Balance, Shares at Sep. 30, 2020 | 7,044,861 | |||
Beginning balance, value at Jun. 30, 2020 | $ 7,036 | 15,710,996 | (16,023,721) | (305,689) |
Beginning Balance, Shares at Jun. 30, 2020 | 7,035,771 | |||
Sales of common stock to investors | $ 77 | 345,933 | 346,010 | |
Sales of common stock to investors, Shares | 76,891 | |||
Common stock issued for convertible note conversion | $ 332 | 1,486,727 | 1,487,059 | |
Common stock issued for convertible note conversion, Shares | 332,063 | |||
Common stock issued to vendors for compensation | $ 29 | 134,387 | $ 134,416 | |
Common stock issued to vendors for compensation, Shares | 28,822 | |||
Common stock issued for exercise of options, shares | ||||
Stock option-based compensation expense | 2,576,058 | $ 2,576,058 | ||
Stock option-based board of directors expense | 182,223 | 182,223 | ||
Net loss | (6,091,687) | (6,091,687) | ||
Ending balance, value at Jun. 30, 2021 | $ 7,580 | 20,936,050 | (22,115,408) | (1,171,778) |
Ending Balance, Shares at Jun. 30, 2021 | 7,579,285 | |||
Common stock issued to convertible promissory note holders for prepaid interest | $ 30 | 147,471 | 147,501 | |
Common stock issued to convertible promissory note holders for prepaid interest, Shares | 29,500 | |||
Common stock issued to convertible promissory note holders as additional consideration | $ 44 | 192,347 | 192,391 | |
Common stock issued to convertible promissory note holders as additional consideration, Shares | 44,250 | |||
Common stock issued to satisfy contingent liability | $ 13 | 67,162 | 67,175 | |
Common stock issued to satisfy contingent liability, Shares | 13,435 | |||
Common stock issued to employees for compensation | $ 19 | 92,746 | 92,765 | |
Common stock issued to employees for compensation, Shares | 18,553 | |||
Common stock issued in Initial Public Offering, net | $ 1,913 | 11,819,451 | 11,821,364 | |
Common stock issued in Initial Public Offering net, shares | 1,912,500 | |||
Common stock issued for convertible note conversion | $ 324 | 1,605,852 | 1,606,176 | |
Common stock issued for convertible note conversion, Shares | 324,150 | |||
Common stock issued for acquisition | $ 77 | 749,923 | 750,000 | |
Common stock issued for acquisition, shares | 77,264 | |||
Common stock issued for legacy acquisition obligation | $ 375 | 749,625 | 750,000 | |
Common stock issued for legacy acquisition obligation, shares | 375,000 | |||
Common stock issued to vendors for compensation | $ 6 | 65,389 | 65,395 | |
Common stock issued to vendors for compensation, Shares | 6,045 | |||
Common stock issued for exercise of options | $ 17 | 45,683 | $ 45,700 | |
Common stock issued for exercise of options, shares | 17,394 | 392,394 | ||
Stock option-based compensation expense | 536,524 | $ 536,524 | ||
Stock option-based board of directors expense | 87,401 | 87,401 | ||
Net loss | (1,656,761) | (1,656,761) | ||
Ending balance, value at Sep. 30, 2021 | $ 10,292 | $ 36,595,898 | $ (23,772,169) | $ 12,834,021 |
Ending Balance, Shares at Sep. 30, 2021 | 10,291,638 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | Jul. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 |
Cash flows from operating activities: | ||||||
Net loss | $ (1,656,761) | $ (1,277,324) | $ (6,091,687) | $ (4,993,350) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Amortization and depreciation | 27,718 | 5,907 | ||||
Depreciation | 27,054 | 20,222 | ||||
Amortization of paid-in kind common stock interest on convertible notes | 54,039 | 180,642 | 81,456 | |||
Impairment of goodwill | 139,754 | |||||
Stock option based compensation for employees and board of directors | 653,615 | 689,813 | 2,945,487 | 2,550,521 | ||
Issuance of common stock to vendors as compensation | 62,034 | 15,000 | 134,416 | 101,499 | ||
Issuance of common stock to employees to satisfy contingent liability | 92,765 | 91,755 | ||||
Issuance of common stock for additional cost to satisfy contingent liability | 20,217 | 39,311 | ||||
Loss on conversion of convertible notes | 279,730 | 515,464 | ||||
Forgiveness of Paycheck Protection Program (PPP 1) loan | (548,885) | |||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 26,365 | 135,460 | (411,571) | (86,805) | ||
Pre-offering costs | 470,136 | |||||
Prepaid expenses and other current assets | (381,856) | (81,909) | (25,933) | (52,058) | ||
Deferred costs | 17,185 | 124,155 | 136,925 | 14,164 | ||
Other assets | (80,000) | |||||
Accounts payable | (268,823) | (52,343) | 260,002 | 79,183 | ||
Accrued liabilities | (31,770) | (18,680) | 97,068 | (72,360) | ||
Accrued bonus | (151,969) | (6,000) | 440,357 | |||
Accrued legacy acquisition expense | 1,250,000 | |||||
Deferred revenue | 15,630 | 499,650 | (231,937) | 62,433 | ||
Net cash used in operating activities | (1,053,136) | (160,542) | (1,209,616) | (2,024,275) | ||
Cash flow from investing activities: | ||||||
Purchases of equipment | (18,225) | (15,004) | (28,003) | (32,660) | ||
Net cash used in investing activities | (18,225) | (15,004) | (28,003) | (32,660) | ||
Cash flows from financing activities: | ||||||
Proceeds from initial public offering, net | $ 11,800,000 | 11,821,364 | ||||
Proceeds from issuance of common equity to investors | 10,820 | 346,010 | 7,000 | $ 1,820,000 | ||
Proceeds from exercise of stock options | 45,700 | |||||
Net cash provided by financing activities | 11,867,064 | 10,820 | 1,974,702 | 1,888,385 | ||
Net change in cash and cash equivalents | 10,795,703 | (164,726) | 737,083 | (168,550) | ||
Cash and cash equivalents, beginning of year | $ 1,771,929 | 1,771,929 | 1,034,846 | 1,034,846 | 1,203,396 | |
Cash and cash equivalents, end of period | 12,567,632 | 870,120 | 1,771,929 | 1,034,846 | $ 1,771,929 | |
Non-cash Investing and Financing activities: | ||||||
Issuance of common stock for satisfaction of contingent liability | 750,000 | 46,958 | 87,400 | |||
Conversion of convertible promissory notes 1 into common stock | 1,606,176 | 1,487,059 | ||||
Issuance of warrants in connection with initial public offering | 522,360 | |||||
Issuance of common stock for satisfaction of legacy acquisition liability | $ 750,000 | |||||
Proceeds from Paycheck Protection Program (PPP 1) loan | 548,885 | |||||
Proceeds from Paycheck Protection Program (PPP 2) loan | 623,828 | |||||
Proceeds from convertible promissory notes 1 | 1,332,500 | |||||
Proceeds from convertible promissory notes 2 | 1,475,000 | |||||
Pre-offering costs incurred | (470,136) | |||||
Non-cash Investing and Financing activities: | ||||||
Forgiveness of Paycheck Protection Program (PPP 1) loan | 548,885 | |||||
Common stock issued to convertible Note 2 holders as additional consideration | 192,347 | |||||
Common stock issued to convertible Note 1 holders as additional consideration | 173,771 | |||||
Common stock issued for interest paid-in kind on convertible notes | $ 147,471 | $ 257,894 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
DESCRIPTION OF BUSINESS | NOTE 1. DESCRIPTION OF BUSINESS The Glimpse Group, Inc. (“Glimpse”) is a Virtual (VR) and Augmented (AR) Reality company, comprised of a diversified portfolio of VR and AR software and services companies. Glimpse’s ten wholly-owned operating subsidiaries (“Subsidiary Companies” or “Subsidiaries”) are: Adept Reality, LLC (dba Adept XR Learning), Kabaq 3D Technologies, LLC (dba QReal), KreatAR, LLC (dba PostReality), D6 VR, LLC, Immersive Health Group, LLC, Foretell Studios, LLC (dba Foretell Reality), Number 9, LLC (dba Pagoni VR), Early Adopter, LLC, and MotionZone, LLC (dba AUGGD) and one subsidiary in Turkey, Glimpse Group Yazılım ve ARGE Ticaret Anonim Şirketi (“Glimpse Turkey”). In addition, the Company has one inactive subsidiary company, In-It VR, LLC (dba Mezmos), and with the operating Subsidiaries collectively comprise the “Company” or “Glimpse”. Glimpse was incorporated as The Glimpse Group, Inc. in the State of Nevada, on June 15, 2016. A new subsidiary company was established in October 2021. See Note 11. Glimpse’s robust VR/AR ecosystem, collaborative environment and business model simplify the many challenges faced by companies in an emerging industry. Glimpse cultivates and manages business operations while providing a strong network of professional relationships, thereby allowing the subsidiary company entrepreneurs to maximize their time and resources in pursuit of mission-critical endeavors, reducing time to market, optimizing costs, improving product quality and leveraging joint go-to-market strategies, while simultaneously providing investors an opportunity to invest directly into the VR/AR industry via a diversified platform. The Company completed an initial public offering (“IPO”) of its common stock on the Nasdaq Capital Market Exchange (“Nasdaq”) on July 1, 2021, under the ticker VRAR. See Note 7. On November 2, 2021 the Company completed a securities purchase agreement (“SPA”) for the sale of additional common stock to certain institutional investors. See Note 11. | NOTE 1. DESCRIPTION OF BUSINESS The Glimpse Group, Inc. (“Glimpse”) is a Virtual (VR) and Augmented (AR) Reality company, comprised of a diversified portfolio of VR and AR software and services companies. Glimpse’s nine wholly-owned operating subsidiaries (“Subsidiary Companies” or “Subsidiaries”) are: Adept Reality, LLC (dba Adept XR Learning), Kabaq 3D Technologies, LLC (dba QReal), KreatAR, LLC (dba PostReality), D6 VR, LLC, Immersive Health Group, LLC, Foretell Studios, LLC (dba Foretell Reality), Number 9, LLC (dba Pagoni VR), and Early Adopter, LLC and one subsidiary in Turkey, Glimpse Group Yazilim ve ARGE Ticaret Anonim Şirketi (“Glimpse Turkey”). In addition, the Company has two inactive subsidiary companies: In-It VR, LLC (dba Mezmos) and MotionZone, LLC (collectively, the “Company” or “Glimpse”). Glimpse was incorporated as The Glimpse Group, Inc. in the State of Nevada, on June 15, 2016. Glimpse’s robust VR/AR ecosystem, collaborative environment and business model simplify the many challenges faced by companies in an emerging industry. Glimpse cultivates and manages business operations while providing a strong network of professional relationships, thereby allowing the subsidiary company entrepreneurs to maximize their time and resources in pursuit of mission-critical endeavors, reducing time to market, optimizing costs, improving product quality and leveraging joint go-to-market strategies, while simultaneously providing investors an opportunity to invest directly into the VR/AR industry via a diversified platform. The Company completed an initial public offering (“IPO”) of its common stock on the Nasdaq Capital Market Exchange (“Nasdaq”) on July 1, 2021, under the ticker VRAR. See Note 13. Summary of Glimpse’s Active Subsidiary Companies Kabaq 3D Technologies, LLC (dba QReal) Adept Reality, LLC (dba Adept XR Learning) KreatAR, LLC (dba PostReality) D6 VR, LLC Immersive Health Group, LLC (IHG) Foretell Studios, LLC (dba Foretell Reality) Number 9, LLC (dba Pagoni VR) Early Adopter, LLC (EA) Glimpse Group Yazilim ve ARGE Ticaret Anonim Şirketi (“Glimpse Turkey”) |
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Liquidity And Capital Resources | ||
LIQUIDITY AND CAPITAL RESOURCES | NOTE 2. LIQUIDITY AND CAPITAL RESOURCES The Company incurred a loss of $ 1.66 1.28 On July 1, 2021 the Company completed an IPO in which, as a result of the sale of its common shares at $ 7.00 13.4 11.8 13.6 The Company expects to continue to generate net losses for the foreseeable future as it makes investments to grow its business. Management believes that the Company’s existing balances of cash and cash equivalents, which are approximately $ 26 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 | NOTE 2. LIQUIDITY AND CAPITAL RESOURCES The Company incurred a loss of $ 6.09 4.99 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Net cash used in operating activities was $ 1.21 2.02 8.88 1.82 The combination of operating losses since inception, cash expected to be used in operating activities in the future, uncertain conditions relating to additional capital raises and continued revenue growth had created uncertainty about the Company’s ability to continue as a going concern. The Company had $ 1.77 1.03 7.00 13.4 11.8 The Company generated $ 3.42 1.95 0.549 0.624 As of the date that this financial statement was issued, the Company’s cash position was approximately $ 13 1.5 Given the above, doubt about the company’s ability to continue as a going concern was alleviated and the accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. While Management believes it will be able to continue to grow the Company’s revenue base, there is no assurance. In parallel, Management continually monitors its capital structure and operating plans and evaluates various potential funding alternatives that may be needed in order to finance the Company’s research and development activities, general and administrative expenses and growth strategy. These alternatives include raising funds through public equity or debt markets. Although there is no assurance that, if needed, the Company will be successful with its fundraising initiatives, the Company has been successful historically in raising equity capital and Management believes that its Nasdaq listing significantly increases its ability to access capital going forward. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2021 and the results of operations and cash flows for the three months ended September 30, 2021 and 2020. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three months ended September 30, 2021 are not necessarily indicative of the results to be expected for the entire year ending June 30, 2022 or for any subsequent periods. The consolidated balance sheet at June 30, 2021 has been derived from the audited consolidated financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended June 30, 2021. Principles of Consolidation The accompanying consolidated financial statements include the balances of Glimpse and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Accounting Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the accompanying consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The principal estimates relate to the valuation of allowance for doubtful accounts, common stock, stock options, cost of goods sold and allocation of the purchase price of assets relating to business combinations. Cash and Cash Equivalents Cash and cash equivalents consist of cash and deposits in bank checking accounts with immediate access and cash equivalents that represent highly liquid investments. Accounts Receivable Accounts receivable consists primarily of amounts due from customers under normal trade terms. Allowances for uncollectible accounts are provided for based upon a variety of factors, including historical amounts written-off, an evaluation of current economic conditions, and assessment of customer collectability. As of September 30, 2021 and June 30, 2021 no THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Customer Concentration and Credit Risk Two customers accounted for approximately 70 56 14 53 19 13 11 10 One customer accounted for approximately 76 71 57 14 The Company maintains cash in accounts that, at times, may be in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on such accounts. Equipment, net Equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. The costs of improvements and betterments are capitalized and expenditures for repairs and maintenance are expensed in the period incurred. The Company assesses the recoverability of equipment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. There was no impairment of equipment for the periods presented. Business Combinations The results of a business acquired in a business combination are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair values as of the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed may require management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenues, costs and cash flows. Intangibles, net Intangibles represent the allocation of a portion of an asset acquisition purchase price (see Note 4). Intangibles are stated at allocated cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the related assets. Goodwill The Company reviews goodwill for impairment annually or more frequently if current circumstances or events indicate that the fair value may be less than its carrying value. The Company recorded goodwill related to an asset acquisition, see Note 4. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, such as accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The Company’s convertible debt approximates fair value due to its short-term nature and market rate of interest. Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual and Augmented Reality projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual and Augmented Reality software that is sold either as a license or as a SaaS subscription. The Company applies the following steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; ● recognize revenue as the performance obligation is satisfied; ● determine that collection is reasonably assured. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product or service is performed and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Any unrecognized portion of revenue and any corresponding unrecognized expenses are presented as deferred revenue and deferred costs, respectively, in the accompanying consolidated balance sheet. Deferred costs include cash and equity based payroll costs, and may include payments to vendors. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales taxes and other taxes are excluded from revenues. Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products/services. Determining whether products/services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Further, judgment may be required to determine the standalone selling price for each distinct performance obligation. Disaggregation of Revenue The Company generated revenue for the three months ended September 30, 2021 and 2020 by delivering: (i) Software Services, consisting primarily of VR/AR software projects, solutions and consulting services, and (ii) Software Licenses & SaaS, consisting primarily of VR and AR software licenses or SaaS. The Company currently generates its revenues primarily from customers in the United States. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Revenue for Software Services projects and solutions is recognized at the point of time in which the customer obtains control of the project, customer accepts delivery and confirms completion of the project. Revenue for Software Services consulting services and website maintenance is recognized at the point of time in which the Company performs the services, typically on a monthly retainer basis. Revenue for Software License and SaaS is recognized at the point of time in which the Company delivers the software and customer accepts delivery. If there are contractually stated ongoing service obligations to be performed during the term of the Software License or SaaS contract, then revenues are recognized ratably over the term of the contract. Timing of Revenue The timing of revenue recognition for the three months ended September 30, 2021 and 2020 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2021 2020 For the Three Months Ended September 30, 2021 2020 Products transferred at a point in time $ 955,751 $ 193,175 Products and services transferred over time 66,782 66,752 Total Revenue $ 1,022,533 $ 259,927 Remaining Performance Obligations Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For Software Services project contracts, the Company generally invoices customers after the project has been delivered and accepted by the customer. Software Service project contracts typically consist of designing and programming software for the customer. In most cases, there is only one performance obligation, and revenue is recognized upon completion, delivery and customer acceptance. In certain instances one contract may include multiple distinct projects that can each be implemented and operated independently of subsequent projects in the contract. In such cases, the Company accounts for these distinct projects as separate performance obligations and recognizes revenue upon the completion of each project or obligation, its delivery and customer acceptance. For Software Services consulting or retainer contracts, the Company generally invoices customers monthly at the beginning of each month in advance for services to be performed in the following month. The sole performance obligation is satisfied when the services are performed. Software Services consulting or retainer contracts typically consist of ongoing support for a customer’s software or specified business practices. For Software License or SaaS contracts, the Company generally invoices customers when the software has been delivered to and accepted by the customer, which is also when the performance obligation is satisfied. For multi-period Software License or SaaS contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Software License or SaaS contracts consist of providing clients with software designed by the Company. For Software License or SaaS contracts, there are generally no ongoing support obligations unless specified in the contract (becoming a Software Service). THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Deferred revenue is comprised mainly of software project contract performance obligations not completed. Unfulfilled performance obligations represent amounts expected to be earned by the Company on executed contracts. As of September 30, 2021, the Company had approximately $ 1.20 Employee Stock-Based Compensation The Company recognizes stock-based compensation expense related to grants to employees or service providers based on grant date fair values of common stock or the stock options, which are amortized over the requisite period, as well as forfeitures as they occur. The Company values the options using the Black-Scholes Merton (“Black Scholes”) method utilizing various inputs such as expected term, expected volatility and the risk-free rate. The expected term reflects the application of the simplified method, which is the weighted average of the contractual term of the grant and the vesting period for each tranche. Expected volatility is derived from a weighted average of volatility inputs for the Company since its IPO. Prior to its IPO, expected volatility is derived from a weighted average of volatility inputs for comparable software and technology service companies The risk-free rate is based on the implied yield of U.S. Treasury notes as of the grant date with a remaining term approximately equal to the expected life of the award. Research and Development Costs Research and development expenses are expensed as incurred, and include payroll, employee benefits and stock-based compensation expense. Research and development expenses also include third-party development and programming costs. Given the emerging industry and uncertain market environment the Company operates in, research and development costs are not capitalized. Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company establishes a valuation allowance if it is more likely than not that the deferred tax assets will not be recovered based on an evaluation of objective verifiable evidence. For tax positions that are more likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 The Company’s policy for recording interest and penalties associated with audits is to record such expense as a component of income tax expense. There were no amounts accrued for penalties or interest for the three months ended September 30, 2021 and 2020. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position. Earnings Per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential common shares include the issuance of potential shares of common stock for outstanding stock options and convertible debt. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company’s financial statements. | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Principles of Consolidation The accompanying consolidated financial statements include the balances of Glimpse and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Accounting Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the accompanying consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The principal estimates relate to the valuation of allowance for doubtful accounts, common stock, stock options and cost of goods sold. Cash and Cash Equivalents Cash and cash equivalents consist of cash and deposits in bank checking accounts or money market funds with immediate access. Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual and Augmented Reality projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual and Augmented Reality software that is sold either as a license or as a SaaS subscription. The Company adopted the new accounting standard, Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers The Company applies the following steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; ● recognize revenue as the performance obligation is satisfied; ● determine that collection is reasonably assured THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Any unrecognized portion of revenue and any corresponding unrecognized expenses are presented as deferred revenue and deferred costs, respectively, in the accompanying consolidated balance sheet. Deferred costs include cash and equity based payroll costs, and may include payments to vendors. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales taxes and other taxes are excluded from revenues. Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products/services. Determining whether products/services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Further, judgment may be required to determine the standalone selling price for each distinct performance obligation. Disaggregation of Revenue The Company generated revenue for the years ended June 30, 2021 and 2020 by delivering: (i) Software Services, consisting primarily of VR/AR software projects, solutions and consulting services, and (ii) Software Licenses & SaaS, consisting primarily of VR and AR software licenses or SaaS. The Company currently generates its revenues primarily from customers in the United States. Revenue for Software Services projects and solutions is recognized at the point of time in which the customer obtains control of the project, customer accepts delivery and confirms completion of the project. Revenue for Software Services consulting services and website maintenance is recognized at the point of time in which the Company performs the services, typically on a monthly retainer basis. Revenue for Software License and SaaS is recognized at the point of time in which the Company delivers the software and customer accepts delivery. If there are contractually stated ongoing service obligations to be performed during the term of the Software License or SaaS contract, then revenues are recognized ratably over the term of the contract. As detailed in the Company’s Consolidated Statement of Operations, the following is a disaggregation of the Company’s revenue by major source for the years ended June 30, 2021 and 2020: SCHEDULE OF DISAGGREGATION OF REVENUE For the Years Ended June 30, 2021 2020 Software Services $ 3,082,528 $ 1,777,447 Software License and Software as a Service 338,967 167,868 Total Revenue $ 3,421,495 $ 1,945,315 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Timing of Revenue As the Company began adopting ASC 606 in July 2020, the timing of revenue recognition for periods prior to the adoption is not required: SCHEDULE OF TIMING REVENUE RECOGNITION For the Year Ended June 30, 2021 Products transferred at a point in time $ 2,967,586 Products and services transferred over time 453,909 Total Revenue $ 3,421,495 Remaining Performance Obligations Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For Software Services project contracts, the Company generally invoices customers after the project has been delivered and accepted by the customer. Software Service project contracts typically consist of designing and programming software for the customer. In most cases, there is only one performance obligation, and revenue is recognized upon completion, delivery and customer acceptance. In certain instances one contract may include multiple distinct projects that can each be implemented and operated independently of subsequent projects in the contract. In such cases, the Company accounts for these distinct projects as separate performance obligations and recognizes revenue upon the completion of each project or obligation, its delivery and customer acceptance. For Software Services consulting or retainer contracts, the Company generally invoices customers monthly at the beginning of each month in advance for services to be performed in the following month. The sole performance obligation is satisfied when the services are performed. Software Services consulting or retainer contracts typically consist of ongoing support for a customer’s software or specified business practices. For Software License or SaaS contracts, the Company generally invoices customers when the software has been delivered to and accepted by the customer, which is also when the performance obligation is satisfied. For multi-period Software License or SaaS contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Software License or SaaS contracts consist of providing clients with software designed by the Company. For Software License or SaaS contracts, there are generally no ongoing support obligations unless specified in the contract (becoming a Software Service). Deferred revenue is comprised mainly of software project contract performance obligations not completed. Unfulfilled performance obligations represent amounts expected to be earned by the Company on executed contracts. As of June 30, 2021, the Company had approximately $ 1.23 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Prior to the adoption of ASC 606 at July 1, 2020, the Company’s revenue recognition was as follows: Software Service Revenue The Company generates software related revenues from services performed for: Virtual and Augmented Reality projects, consulting retainers, and ongoing website maintenance and support. Software service revenue generated from Virtual and Augmented Reality projects is recognized after delivery of the project has occurred, when persuasive evidence of an arrangement exists, the fee is fixed or determinable, and collection is reasonably assured. Any unrecognized portion of project revenue and any corresponding unrecognized expenses are presented as deferred revenue and deferred costs, respectively, in the accompanying consolidated balance sheets. Deferred costs include cash and equity based payroll costs, and may include payments to vendors. Software service revenue generated from consulting retainers is typically billed in advance for services performed and is recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, services have been performed, and collection is reasonably assured. Software service revenue generated from ongoing website maintenance and support services is typically billed in arrears for services performed and is recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, and collection is reasonably assured. Software License and Software as a Service Revenue The Company derives revenue from software as-a-service subscriptions and software licenses. Upon delivery of the software to customers, revenue is recognized ratably over the term of the contract or arrangement. The unrecognized portion of this revenue and any corresponding unrecognized expenses are presented as deferred revenue and deferred costs, respectively, in the accompanying consolidated balance sheets. Accounts Receivable Accounts receivable consists primarily of amounts due from customers under normal trade terms. Allowances for uncollectible accounts are provided for based upon a variety of factors, including historical amounts written-off, an evaluation of current economic conditions, and assessment of customer collectability. As of June 30, 2021 and June 30, 2020 no allowance for doubtful accounts was recorded as all amounts were considered collectible. Customer Concentration and Credit Risk Two customers accounted for approximately 49% 26% 23% 13% Two customers accounted for approximately 71% 57% 14% 96% 35% 35% 14% 12% The Company maintains cash in accounts that, at times, may be in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on such accounts. Equipment, net Equipment is stated at cost less accumulated depreciation (see Note 4). Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. The costs of improvements and betterments are capitalized and expenditures for repairs and maintenance are expensed in the period incurred. The Company assesses the recoverability of equipment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. There was no impairment of equipment for the periods presented. Employee Stock-Based Compensation The Company recognizes stock-based compensation expense related to grants to employees or service providers based on grant date fair values of common stock or the stock options, which are amortized over the requisite period, as well as forfeitures as they occur. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 The Company values the options using the Black-Scholes Merton (“Black Scholes”) method utilizing various inputs such as expected term, expected volatility and the risk-free rate. The expected term reflects the application of the simplified method, which is the weighted average of the contractual term of the grant and the vesting period for each tranche. Expected volatility is derived from a weighted average of volatility inputs for comparable software and technology service companies. The risk-free rate is based on the implied yield of U.S. Treasury notes as of the grant date with a remaining term approximately equal to the expected life of the award. Research and Development Costs Research and development expenses are expensed as incurred, and include payroll, employee benefits and stock-based compensation expense. Research and development expenses also include third-party development and programming costs. Given the emerging industry and uncertain market environment the Company operates in, research and development costs are not capitalized. Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company establishes a valuation allowance if it is more likely than not that the deferred tax assets will not be recovered based on an evaluation of objective verifiable evidence. For tax positions that are more likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes The Company’s policy for recording interest and penalties associated with audits is to record such expense as a component of income tax expense. There were no amounts accrued for penalties or interest for the years ended June 30, 2021 and 2020. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position. Goodwill The Company reviews goodwill for impairment annually or more frequently if current circumstances or events indicate that the fair value may be less than its carrying value. The Company recorded a goodwill impairment during the fiscal year ended June 30, 2020 (see Note 8). There was no Earnings Per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential common shares include the issuance of potential shares of common stock for outstanding stock options and convertible debt. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, such as accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The Company’s convertible debt approximates fair value due to its short-term nature and market rate of interest. Recently Issued Pronouncements Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842). Financial Instruments – Credit Losses In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates (ASC 326). The Company will be required to use a forward-looking expected credit loss model for accounts receivable, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities, if any, will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities The Company does not expect to adopt this standard prior to July 1, 2023. The Company is currently evaluating the impact of this standard on its consolidated financial statements. Income Taxes In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, Income Taxes THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 |
ASSET ACQUISTION
ASSET ACQUISTION | 3 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ASSET ACQUISTION | NOTE 4. ASSET ACQUISTION In August 2021, the Company, through its wholly owned subsidiary company, MotionZone, LLC (dba AUGGD), completed an acquisition of certain assets, as defined, from Augmented Reality Investments Pty Ltd, an Australia based company providing augmented reality software and services. Over time, the acquisition may facilitate the Company’s endeavors in the Architecture, Engineering and Construction (“AEC”) market segments. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Initial consideration for the purchase was $ 0.75 77,264 SCHEDULE OF ASSET ACQUISITION As of September 30, 2021 Value ($) Useful Life Intangible Assets Customer Relationships $ 250,000 3 Technology 250,000 3 Less: Accumulated Amortization (20,833 ) Intangible Assets, net $ 479,167 Goodwill $ 250,000 N/A The goodwill recognized in connection with the acquisition is primarily attributable to new markets access and is expected to be deductible for tax purposes. The results of operations of AUGGD have been included in the Company’s consolidated financial statements from the date of acquisition and did not have a material impact on the Company’s consolidated financial statements. |
CONTINGENT ACQUISITION LIABILIT
CONTINGENT ACQUISITION LIABILITY | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
CONTINGENT ACQUISITION LIABILITY | NOTE 5. CONTINGENT ACQUISITION LIABILITY Kabaq 3D Technologies, LLC The Company’s November 2016 acquisition of assets relating to the acquisition of Kabaq 3D Technologies, LLC contained a provision for additional acquisition consideration triggered by a potential listing of the Company’s common stock on a national securities exchange and certain stock trading volume thresholds. In August 2021, the milestones triggering the additional consideration were met and the Company incurred $ 750,000 375,000 2.00 KreatAR, LLC The Company’s October 2016 acquisition of assets relating to the acquisitions of KreatAR, LLC contained a provision for additional acquisition consideration triggered by a potential listing of the Company’s common stock on a national securities exchange and certain stock trading volume thresholds. In August 2021, the milestones triggering the additional consideration were met. In connection therewith, the Company incurred $ 500,000 | NOTE 7. CONTINGENT ACQUISITION LIABILITY Early Adopter, LLC In connection with the Company’s April 2018 asset acquisition of Early Adopter.Com (“EA”), the Company expected to pay additional contingent amounts, based on EA’s annual revenues (“contingent performance bonus”) as measured and paid in each of the first three anniversary dates after the closing of the acquisition, paid by the issuance of the Company’s common stock at a fixed price of $ 3.25 At June 30, 2020, the total estimated contingent acquisition liability was approximately $ 47,000 32,000 96,800 Kabaq 3D Technologies, LLC The Company’s November 2016 acquisition of assets relating to the acquisition of Kabaq 3D Technologies, LLC contained a provision for additional acquisition consideration triggered by a potential listing of the Company’s common stock on a national securities exchange and certain stock trading volume thresholds. In August 2021, the milestones triggering the additional consideration were met and the Company incurred $ 750,000 KreatAR, LLC The Company’s October 2016 acquisition of assets relating to the acquisitions of KreatAR, LLC (and related entity LocateAR) contained a provision for additional acquisition consideration triggered by a potential listing of the Company’s common stock on a national securities exchange and certain stock trading volume thresholds. In August 2021, the milestones triggering the additional consideration were met. In connection therewith, the Company incurred $ 500,000 |
DEBT
DEBT | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||
DEBT | NOTE 6. DEBT Convertible Promissory Notes 1 In December 2019 the Company raised $ 1.33 three-year The Notes 1 bore an interest rate of 10 The Notes 1 were convertible by a Note 1 holder at any time during the term into common stock of the Company at a fixed price of $4.50/share, or approximately 295,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Interest expense on the Notes 1 was approximately $ 48,500 Primarily in January 2021, Note 1 holders converted approximately $ 1.21 0.30 4.00 The holders of the remaining unconverted Notes 1, equating to approximately $ 117,000 8,000 4.25 The Company recorded a loss on conversion of the remaining Notes 1 of approximately $ 18,000 Convertible Promissory Notes 2 In March 2021, the Company raised $ 1.48 two-year term The Notes 2 bore an interest rate of 10 The Notes 2 were convertible by a note holder at any time during the term into common stock of the Company at a fixed price of $ 5.00 295,000 March 5, 2023 5.00 1.313 162,000 The Company recorded a loss on conversion of the Notes 2 of approximately $ 262,000 | NOTE 9. DEBT Convertible Promissory Notes 1 During the year ended June 30, 2020, the Company raised $ 1.33 three 0.2 45,000 4.50 170,000 149,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Additional interest expense for the amortization of the original issue discount amounted to approximately $ 96,900 The Notes 1 bore an interest rate of 10 4.50 57,000 258,000 The Notes 1 were convertible by a Note 1 holder at any time during the term into common stock of the Company at a fixed price of $4.50/share, or approximately 295,000 During the year ended June 30, 2021, Note 1 holders converted approximately $ 1.21 0.30 4.00 4.50 4.00 In addition to the reduced conversion price, the Note holders who converted received the third year 10 122,000 30,000 515,500 during the year ended June 30, 2021, reflecting the reduction of the Notes conversion price from $4.50/share to $4.00/share, the issuance of Year 3 Interest (10%) paid in common stock (at $4.00/share instead of $4.50/share), and the write-off of the remaining related pre-paid interest and original issue discount expenses. The holders of the remaining unconverted Convertible Notes 1, equating to approximately $ 117,000 8,000 4.25 Convertible Promissory Notes 2 In March 2021, the Company raised $ 1.475 two-year 44,000 5.00 192,000 The Notes 2 bear an interest rate of 10 5.00 29,500 147,500 5.00 The Notes 2 are convertible by a note holder at any time during the term into common stock of the Company at a fixed price of $ 5.00 295,000 March 5, 2023 5.00 1.313 162,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 SBA Paycheck Protection Program Loans/EIDL In May 2020, the Company received a Paycheck Protection Program 1 (“PPP1”) loan from the Small Business Administration (“SBA”) in the amount of $ 0.55 0.01 In February 2021, the Company received a second Paycheck Protection Program 2 (“PPP2”) loan in the amount of $ 0.62 1 February 2026 |
EQUITY
EQUITY | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Equity [Abstract] | ||
EQUITY | NOTE 7. EQUITY Initial Public Offering (“IPO”) On July 1 ,2021, the Company completed an IPO of common stock on the Nasdaq under the symbol “VRAR”, at a price of $ 7.00 The Company sold approximately 1.91 11.82 In connection with the IPO, and for services rendered, the underwriter was issued a warrant to purchase 87,500 7.00 The warrant is valued at approximately $520,000 based on the Black-Scholes options pricing model method with the following assumptions: 5 year expected term, 129% expected volatility, 0.87% risk-free rate and 0% expected dividend yield. As stated in Note 6, in conjunction with the IPO, the outstanding convertible promissory Notes 1 and 2 were satisfied in full through the issuance of 324,150 280,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Common Stock Issued Common stock sold to Investors During the three months ended September 30, 2021, the Company sold approximately 1.91 7.00 11.82 During the three months ended September 30, 2020, the Company sold approximately 2,400 4.50 10,800 Common stock issued to Investors During the three months ended September 30, 2021, in connection with the conversion of convertible promissory notes and in conjunction with the IPO, the Company issued 324,150 Common stock issued for Acquisition During the three months ended September 30, 2021 the Company issued approximately 77,000 0.75 Common stock issued for Legacy Acquisition Obligation During the three months ended September 30, 2021 the Company issued 375,000 shares of common stock to satisfy a legacy acquisition obligation of $ 750,000 (see Note 5). This was accomplished by settling outstanding stock options the acquiree had been granted at $ 2.00 per share. Common stock issued to Vendors During the three months ended September 30, 2021 and 2020, the Company issued approximately 6,000 6,700 65,000 30,000 3,000 15,000 Common stock issued for Exercise of options During the three months ended September 30, 2021, the Company issued approximately 17,000 46,000 Employee Stock-Based Compensation The Company’s 2016 Equity Incentive Plan (the “Plan”), as amended, has 10 5.64 The Company recognizes compensation expense relating to awards ratably over the requisite period, which is generally the vesting period. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Stock options have been recorded at their fair value. The Black-Scholes option-pricing model assumptions used to value the issuance of stock options under the Plan, are noted in the following table: SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL ASSUMPTIONS Three Months Ended Three Months Ended Weighted average expected terms (in years) 5.4 5.1 Weighted average expected volatility 146.1 % 117.3 % Weighted average risk-free interest rate 0.9 % 0.3 % Expected dividend yield 0.0 % 0.0 % The grant date fair value, for options granted during the three months ended September 30, 2021 and 2020 was approximately $ 0.61 0.40 The following is a summary of the Company’s stock option activity for the three months ended September 30, 2021 and 2020: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2021 4,740,910 $ 3.40 8.5 $ 7,893,467 Options Granted 94,666 7.11 9.9 423,923 Options Exercised (392,394 ) 2.14 7.2 (3,720,795 ) Options Forfeited / Cancelled (82,838 ) 4.61 9.5 (563,393 ) Outstanding at September 30, 2021 4,360,344 $ 3.58 8.6 $ 16,283,017 Exercisable at September 30, 2021 4,143,324 $ 3.47 8.5 $ 15,852,955 Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2020 4,092,593 $ 3.19 8.4 $ 5,553,916 Options Granted 108,324 4.50 9.9 - Options Exercised - - - - Options Forfeited / Cancelled (16,809 ) 4.33 9.4 (2,828 ) Outstanding at September 30, 2020 4,184,108 $ 3.22 8.4 $ 5,469,339 Exercisable at September 30, 2020 3,840,479 $ 3.14 8.4 $ 5,337,626 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 The Company’s stock option-based expense for the three months ended September 30, 2021 and 2020 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE Three Months Ended Three Months Ended Stock option-based expense : Research and development expenses $ 347,597 $ 403,912 General and administrative expenses 66,643 98,163 Sales and marketing expenses 127,992 99,300 Cost of goods sold 22,764 45,687 Board option expense 88,619 42,751 Total $ 653,615 $ 689,813 During the year ended June 30, 2019, certain Company advisors received approximately $ 320,000 5.25 three-year term, for potential services to be performed over a three-year 320,000 29,000 58,000 29,000 At September 30, 2021, total unrecognized compensation expense to employees, board members and vendors related to stock options was approximately $ 1.06 1.85 1.19 0.83 The intrinsic value of stock options at September 30, 2021 was computed using a fair market value of the common stock of $ 7.29 4.50 | NOTE 6. EQUITY Common Stock and Preferred Stock As of June 30, 2021, the Company had authorized 300 0.001 20 7.58 7.04 0 Sale of Common Stock Common stock sold to Investors During the years ended June 30, 2021 and 2020, the Company sold approximately 76,900 1,600 4.50 346,000 7,000 On July 1, 2021 the Company sold 1,912,500 7.00 Common stock issued to Investors During the year ended June 30, 2021, in connection with the conversion of convertible promissory notes the Company issued approximately 332,000 During the years ended June 30, 2021 and 2020, in connection with the issuance of convertible promissory notes, the Company issued approximately 74,000 102,000 Common stock issued to Vendors During the years ended June 30, 2021 and 2020, the Company issued approximately 28,800 23,700 134,400 101,500 Common stock issued to satisfy Contingent Liabilities During the year ended June 30, 2021 the Company issued approximately 13,000 67,000 During the year ended June 30, 2020 the Company issued approximately 20,000 92,000 Employee Stock-Based Compensation In October 2016, the Company’s Board of Directors and its stockholders adopted The Glimpse Group, Inc. 2016 Equity Incentive Plan (the “Plan”). Under the Plan, the Company grants stock options at exercise prices generally equal to the fair value of the common stock on the grant date. These options generally expire ten years after the grant date and vest, depending on the optionee, over a varying period of continuous service following the vesting commencement date of such option (ranging from zero to three years), unless the optionee’s continuous service with the Company is terminated earlier. Stock-based compensation expense is recognized evenly over the requisite service period. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 The Plan is administered by the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), who determine the recipients and the terms of the awards granted, subject to the approval of the Company’s Board of Directors. The Plan provides that awards granted may be options, restricted stock, restricted stock units or other stock based awards (collectively the “Awards”). Stock option awards may be either incentive stock options or nonqualified options. The Awards may be granted to eligible employees, directors, service providers, consultants and advisers. As of June 30, 2020 an aggregate of up to 5 0.91 In January and April 2021, the Company amended its 2016 Equity Incentive Plan (the “Plan”), increasing the amount of common shares reserved for issuance from 5 10 5.26 In addition, the share reserve will automatically increase on January 1 of each calendar year, for the period beginning on January 1, 2022 and ending on (and including) January 1, 2030 (each, an “Evergreen Date”) in an amount equal to five percent (5%) of the total number of shares of the Company’s common stock outstanding on December 31st immediately preceding the applicable Evergreen Date (the “Evergreen Increase”). The Company recognizes compensation expense relating to awards ratably over the requisite period, which is generally the vesting period. Stock options have been recorded at their fair value. The Black-Scholes option-pricing model assumptions used to value the issuance of stock options under the Plan, are noted in the following table: SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL ASSUMPTIONS Year Ended Year Ended Year Ended Year Ended Weighted average expected terms (in years) 5.3 5.3 Weighted average expected volatility 126.6 % 117.3 % Weighted average risk-free interest rate 0.5 % 1.4 % Expected dividend yield 0 % 0 % The grant date fair value, for options granted during the year ended June 30, 2021 was approximately $ 2.94 The grant date fair value, for options granted during the year ended June 30, 2020 was approximately $ 2.70 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 The following is a summary of the Company’s stock option activity for the years ended June 30, 2021 and 2020: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2019 3,408,452 $ 2.97 8.5 $ 3,721,339 Options Granted 766,455 4.26 9.5 182,328 Options Exercised - - - - Options Forfeited / Cancelled (82,314 ) 3.84 9.6 (53,977 ) Outstanding at June 30, 2020 4,092,593 $ 3.19 8.4 $ 5,553,916 Exercisable at June 30, 2020 3,581,514 $ 3.06 8.3 $ 5,365,512 Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2020 4,092,593 $ 3.19 8.4 $ 5,553,916 Options Granted 766,419 4.66 9.7 383,210 Options Exercised - - - - Options Forfeited / Cancelled (118,102 ) 4.28 8.9 (89,956 ) Outstanding at June 30, 2021 4,740,910 $ 3.40 8.5 $ 7,893,467 Exercisable at June 30, 2021 4,346,734 $ 3.29 8.4 $ 7,659,692 The Company’s stock option-based expense for the years ended June 30, 2021 and 2020 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE Year Ended Year Ended Stock option-based expense : Research and development expenses $ 1,381,168 $ 1,266,911 General and administrative expenses $ 373,506 570,765 Sales and marketing expenses $ 477,561 293,226 Cost of goods sold $ 526,156 236,825 Board option expense $ 187,096 182,794 Total $ 2,945,487 $ 2,550,521 During the year ended June 30, 2019, certain Company advisors received $ 0.31 5.25 three 0.31 0.06 0.17 116,000 At June 30, 2021, total unrecognized compensation expense to employees, board members and vendors related to stock options was approximately $ 1.50 1.1 1.62 1.02 The intrinsic value of stock options as of June 30, 2021 was computed using a fair market value of the common stock of $ 5.00 4.50 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||
EARNINGS PER SHARE | NOTE 8. EARNINGS PER SHARE The following table presents the computation of basic and diluted net loss per common share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Numerator: Net loss $ (1,656,761 ) $ (1,277,324 ) Denominator: Weighted-average common shares outstanding 9,967,821 7,039,928 Basic and diluted net loss per share $ (0.17 ) $ (0.18 ) THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Potentially dilutive securities that were not included in the calculation of diluted net loss per share attributable to common stockholders because their effect would be anti-dilutive are as follows (in common equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES At September 30, 2021 At September 30, 2020 Stock Options 4,360,344 4,184,108 Warrants 87,500 - Convertible Notes - 296,111 Total 4,447,844 4,480,219 | NOTE 5. EARNINGS PER SHARE The following table presents the computation of basic and diluted net loss per common share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE Year Ended Year Ended Year Ended Year Ended Numerator: Net loss $ (6,091,687 ) $ (4,993,350 ) Denominator: Weighted-average common shares outstanding for basic and diluted net loss per share 7,259,249 6,923,506 Basic and diluted net loss per share $ (0.84 ) $ (0.72 ) Potentially dilutive securities that were not included in the calculation of diluted net loss per share attributable to common stockholders because their effect would be anti-dilutive are as follows (in common equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES At At Stock Options 4,740,910 4,092,593 Convertible Notes 324,150 296,111 Total 5,065,060 4,388,704 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
PROVISION FOR INCOME TAXES | NOTE 9. PROVISION FOR INCOME TAXES There was no current or deferred income tax provision for the three months ended September 30, 2021 and 2020. The Company’s deferred tax assets as of September 30 2021 and 2020 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS As of September 30, As of September 30, 2021 2020 Deferred tax assets: Net-operating loss carryforward $ 4,269,910 $ 2,961,194 Stock-based compensation 586,042 394,742 Total Deferred Tax Assets 4,855,952 3,355,936 Valuation allowance (4,855,952 ) (3,355,936 ) Deferred Tax Asset, Net $ - $ - The Company maintains a valuation allowance on deferred tax assets due to the uncertainty regarding the ability to utilize these deferred tax assets in the future. At September 30, 2021, the Company had potential utilizable aggregate gross net operating loss carryforwards (“NOLs”) of approximately $ 12.35 NOLs for the periods ending June 30, 2018 and prior in the amount of approximately $ 2.86 Section 382 of the U.S. Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. The Company has not completed a Section 382 analysis of the NOL carryforwards. Consequently, the Company’s NOL carryforwards may be subject to annual limitations under Section 382. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and taxing strategies in making this assessment. As a result of the uncertainly in the realization of the Company’s deferred tax assets, the Company has provided a valuation allowance for the full amount of the deferred tax assets at September 30, 2021 and September 30, 2020. The Company’s valuation allowance during the three months ended September 30, 2021 and 2020 increased by approximately $ 0.40 0.20 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 The expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with actual tax expense (benefit) as follows: SCHEDULE OF EXPECTED TAX EXPENSE (BENEFIT) BASED ON US FEDERAL STATUTORY RATE For the Three Months Ended September 30, For the Three Months Ended September 30, 2021 2020 Statutory Federal Income Tax Rate 21.00 % 21.00 % State and Local Taxes, Net of Federal Tax Benefit (13.56 )% (13.56 )% Stock Based Compensation Expense (ISO) 10.61 % 19.15 % Change in Valuation Allowance (18.05 )% (26.59 )% Income Taxes Provision (Benefit) 0.00 0.00 Upon completion of its 2021 U.S. income tax return in 2022, the Company may identify additional remeasurement adjustments. The Company will continue to assess its provision for income taxes as future guidance is issued, but does not currently anticipate significant revisions will be necessary. | NOTE 10. PROVISION FOR INCOME TAXES There was no current or deferred income tax provision for the years ended June 30, 2021 and 2020. The Company’s deferred tax assets as of June 30, 2021 and 2020 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS As of As of June 30, 2021 June 30, 2020 Deferred tax assets: Net-operating loss carryforward $ 3,923,012 $ 2,811,156 Stock-based compensation 536,265 348,013 Total Deferred Tax Assets 4,459,277 3,159,169 Valuation allowance (4,459,277 ) (3,159,169 ) Deferred Tax Asset, Net $ - $ - The Company maintains a valuation allowance on deferred tax assets due to the uncertainty regarding the ability to utilize these deferred tax assets in the future. At June 30, 2021, the Company had potential utilizable aggregate gross net operating loss carryforwards (“NOLs”) of approximately $ 11.35 NOLs for the periods ending June 30, 2018 and prior ($ 2.86 8.49 Section 382 of the U.S. Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. The Company has not completed a Section 382 analysis of the NOL carryforwards. Consequently, the Company’s NOL carryforwards may be subject to annual limitations under Section 382. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and taxing strategies in making this assessment. As a result of the uncertainly in the realization of the Company’s deferred tax assets, the Company has provided a valuation allowance for the full amount of the deferred tax assets at June 30, 2021 and June 30, 2020. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 The Company’s valuation allowance during the years ended June 30, 2021 and 2020 increased by approximately $ 1.30 1.00 The expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with actual tax expense (benefit) as follows: SCHEDULE OF EXPECTED TAX EXPENSE (BENEFIT) BASED ON US FEDERAL STATUTORY RATE For the Year Ended For the Year Ended June 30, 2021 June 30, 2020 Statutory Federal Income Tax Rate (21.00 )% (21.00 )% State and Local Taxes, Net of Federal Tax Benefit (13.56 )% (13.56 )% Stock Based Compensation Expense (ISO) 13.20 % 14.50 % Change in Valuation Allowance 21.36 % 20.06 % Income Taxes Provision (Benefit) 0.00 0.00 Upon completion of its 2021 U.S. income tax return in 2022, the Company may identify additional remeasurement adjustments. The Company will continue to assess its provision for income taxes as future guidance is issued, but do not currently anticipate significant revisions will be necessary. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES Operating Lease The Company has an office space lease expiring, as amended, on December 31, 2022 75,000 Rent expense was approximately $ 86,000 72,000 309,000 75,000 Potential Future Distributions Upon Divestiture or Sale Upon a divestiture or sale of a subsidiary company, the Company is contractually obligated to distribute up to 10 COVID-19 The COVID-19 pandemic has caused and continues to cause significant business and financial markets disruption worldwide and there is significant uncertainty around the duration of this disruption and its ongoing effects on our business. This has primarily manifested itself in prolonged sales cycles. From March 2020 through June 2021, the Company had required substantially all of its employees to work remotely to minimize the risk of the virus. While working remotely has proven to be effective to this point, it may eventually inhibit the Company’s ability to operate its business effectively. Commencing July 2021, the Company has tentatively required employees to return to the office several days a week. We continue to closely monitor the situation and the effects on our business and operations. While uncertainty remains, given the current state of the pandemic, our expected revenue growth and current cash balance, we do not expect the impact of COVID-19 on our business and operations to worsen going forward. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 | NOTE 12. COMMITMENTS AND CONTINGENCIES Operating Lease The Company entered into a 2 January 1, 2020 December 31, 2021 75,000 Rent expense was approximately $ 296,000 247,000 180,000 Officers’ Employment Agreements In May 2021, the Company entered into employment agreements with its three corporate officers. The agreements provide for base salary (including increases linked to Company revenue thresholds), performance bonus, incentive bonus (including those based on capital raising thresholds), equity incentives, benefits and severance (including confidentiality and non-compete). The employment agreements will continue until terminated by either the Company or the respective officers. The Company accrued approximately $ 426,000 1.03 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Potential Future Distributions Upon Divestiture or Sale Upon a divestiture or sale of a subsidiary company, the Company is contractually obligated to distribute up to 10 COVID-19 The Company’s business and operations have been adversely affected by the COVID-19 pandemic, as have the markets in which our customers operate. The COVID-19 pandemic has caused and continues to cause significant business and financial markets disruption worldwide and there is significant uncertainty around the duration of this disruption and its ongoing effects on our business. This has primarily manifested itself in prolonged sales cycles. From March 2020 through June 2021, the Company had required substantially all of its employees to work remotely to minimize the risk of the virus. While working remotely has proven to be effective to this point, it may eventually inhibit the Company’s ability to operate its business effectively. Commencing July 2021, the Company has tentatively required employees to return to the office several days a week. The Company continues to closely monitor the situation and the effects on its business and operations. The Company does not yet know the full extent of potential impacts on its business and operations. Given the uncertainty, the Company cannot reasonably estimate the impact on its future results of operations, cash flows or financial condition. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | NOTE 11. SUBSEQUENT EVENTS ASSET ACQUISTION In October 2021, the Company, through its newly formed and wholly owned subsidiary company, XR Terra, LLC, completed an acquisition of certain assets, as defined, from XR Terra, Inc., a developer of teaching platforms utilized in coding software used in VR and AR programming. Initial consideration for the purchase is $ 0.60 50% 50% 0.30 33,877 SECURITIES PURCHASE AGREEMENT (“SPA”) In November 2021, the Company entered into a SPA to sell $ 15.0 Under the terms of the SPA, the Company sold 1.50 0.75 14.68 five years 10.00 13.6 | NOTE 13. SUBSEQUENT EVENTS Initial Public Offering (“IPO”) On July 1 ,2021, the Company completed an IPO of common stock on the NASDAQ under the symbol “VRAR”, at a price of $ 7.00 The Company sold approximately 1.91 11.82 0.47 0.309 In connection with the IPO, and for services rendered, the underwriter was issued a warrant to purchase 87,500 7.00 June 2026 As stated in Note 9, in conjunction with the IPO, the outstanding convertible promissory Notes 1 and 2 were satisfied in full through issuance of 324,150 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 The following is a condensed balance sheet reflecting the proforma effect of the IPO on the June 30, 2021 balance sheet. SCHEDULE OF CONDENSED BALANCE SHEET REFLECTING PROFORMA EFFECT As Reported at Proforma for IPO Cash and cash equivalents $ 1,771,929 $ 13,728,429 Other current assets 1,406,939 833,296 Equipment, net 42,172 42,172 Total assets $ 3,221,040 $ 14,603,897 Total current liabilities $ 2,339,037 $ 2,004,037 Convertible promissory notes, net 1,429,953 - Other long term liability 623,828 623,828 Total liabilities 4,392,818 2,627,865 Total stockholders’ equity (deficit) (1,171,778 ) 11,976,032 Total liabilities and stockholders’ equity (deficit) $ 3,221,040 $ 14,603,897 ASSET ACQUISTION In August 2021, the Company, through its wholly owned subsidiary company, MotionZone, LLC, completed an acquisition of certain assets, as defined, from Augmented Reality Investments Pty Ltd, an Australia based company providing augmented reality software and services. Over time, the acquisition may facilitate the Company’s endeavors in the Architecture, Engineering and Construction (“AEC”) market segments. Initial consideration for the purchase is $ 0.75 77,264 |
EQUIPMENT, NET
EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
EQUIPMENT, NET | NOTE 4. EQUIPMENT, NET Equipment, primarily comprised of computers and hardware, consisted of the following: SCHEDULE OF EQUIPMENT, NET Value ($) Useful Life (Years) Value ($) Useful Life (Years) As of June 30, 2021 As of June 30, 2020 Value ($) Useful Life (Years) Value ($) Useful Life (Years) Equipment $ 96,963 3 $ 105,239 3 Less: accumulated depreciation (54,791 ) (64,015 ) Balance $ 42,172 $ 41,224 Depreciation expense was $ 27,054 20,222 |
GOODWILL
GOODWILL | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 8. GOODWILL Due to a significant decline in EA’s business, unsuccessful VR/AR product commercialization efforts and negative future growth prospects, the goodwill related to the EA acquisition was determined to be impaired and written down to $ 0 140,000 |
FOREIGN OPERATIONS
FOREIGN OPERATIONS | 12 Months Ended |
Jun. 30, 2021 | |
Foreign Operations | |
FOREIGN OPERATIONS | NOTE 11. FOREIGN OPERATIONS In March 2021, the Company established Glimpse Turkey to support the operations of Kabaq 3D Technologies (dba QReal). Operations consist primarily of 3D modeler and artist employees. Glimpse Turkey has no revenue, long-term obligations or operating leases and all salaries are denominated in US dollars. In August 2021, the Company completed an asset acquisition which included certain assets, as defined, in Australia. See Note 13. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2021 and the results of operations and cash flows for the three months ended September 30, 2021 and 2020. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three months ended September 30, 2021 are not necessarily indicative of the results to be expected for the entire year ending June 30, 2022 or for any subsequent periods. The consolidated balance sheet at June 30, 2021 has been derived from the audited consolidated financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended June 30, 2021. | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the balances of Glimpse and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | Principles of Consolidation The accompanying consolidated financial statements include the balances of Glimpse and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Accounting Estimates | Use of Accounting Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the accompanying consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The principal estimates relate to the valuation of allowance for doubtful accounts, common stock, stock options, cost of goods sold and allocation of the purchase price of assets relating to business combinations. | Use of Accounting Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the accompanying consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The principal estimates relate to the valuation of allowance for doubtful accounts, common stock, stock options and cost of goods sold. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and deposits in bank checking accounts with immediate access and cash equivalents that represent highly liquid investments. | Cash and Cash Equivalents Cash and cash equivalents consist of cash and deposits in bank checking accounts or money market funds with immediate access. |
Accounts Receivable | Accounts Receivable Accounts receivable consists primarily of amounts due from customers under normal trade terms. Allowances for uncollectible accounts are provided for based upon a variety of factors, including historical amounts written-off, an evaluation of current economic conditions, and assessment of customer collectability. As of September 30, 2021 and June 30, 2021 no THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 | Accounts Receivable Accounts receivable consists primarily of amounts due from customers under normal trade terms. Allowances for uncollectible accounts are provided for based upon a variety of factors, including historical amounts written-off, an evaluation of current economic conditions, and assessment of customer collectability. As of June 30, 2021 and June 30, 2020 no allowance for doubtful accounts was recorded as all amounts were considered collectible. |
Customer Concentration and Credit Risk | Customer Concentration and Credit Risk Two customers accounted for approximately 70 56 14 53 19 13 11 10 One customer accounted for approximately 76 71 57 14 The Company maintains cash in accounts that, at times, may be in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on such accounts. | Customer Concentration and Credit Risk Two customers accounted for approximately 49% 26% 23% 13% Two customers accounted for approximately 71% 57% 14% 96% 35% 35% 14% 12% The Company maintains cash in accounts that, at times, may be in excess of the Federal Deposit Insurance Corporation limit. The Company has not experienced any losses on such accounts. |
Equipment, net | Equipment, net Equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. The costs of improvements and betterments are capitalized and expenditures for repairs and maintenance are expensed in the period incurred. The Company assesses the recoverability of equipment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. There was no impairment of equipment for the periods presented. | Equipment, net Equipment is stated at cost less accumulated depreciation (see Note 4). Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. The costs of improvements and betterments are capitalized and expenditures for repairs and maintenance are expensed in the period incurred. The Company assesses the recoverability of equipment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. There was no impairment of equipment for the periods presented. |
Business Combinations | Business Combinations The results of a business acquired in a business combination are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair values as of the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed may require management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenues, costs and cash flows. | |
Intangibles, net | Intangibles, net Intangibles represent the allocation of a portion of an asset acquisition purchase price (see Note 4). Intangibles are stated at allocated cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the related assets. | |
Goodwill | Goodwill The Company reviews goodwill for impairment annually or more frequently if current circumstances or events indicate that the fair value may be less than its carrying value. The Company recorded goodwill related to an asset acquisition, see Note 4. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 | Goodwill The Company reviews goodwill for impairment annually or more frequently if current circumstances or events indicate that the fair value may be less than its carrying value. The Company recorded a goodwill impairment during the fiscal year ended June 30, 2020 (see Note 8). There was no |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, such as accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The Company’s convertible debt approximates fair value due to its short-term nature and market rate of interest. | Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, such as accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The Company’s convertible debt approximates fair value due to its short-term nature and market rate of interest. |
Revenue Recognition | Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual and Augmented Reality projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual and Augmented Reality software that is sold either as a license or as a SaaS subscription. The Company applies the following steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; ● recognize revenue as the performance obligation is satisfied; ● determine that collection is reasonably assured. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product or service is performed and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Any unrecognized portion of revenue and any corresponding unrecognized expenses are presented as deferred revenue and deferred costs, respectively, in the accompanying consolidated balance sheet. Deferred costs include cash and equity based payroll costs, and may include payments to vendors. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales taxes and other taxes are excluded from revenues. Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products/services. Determining whether products/services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Further, judgment may be required to determine the standalone selling price for each distinct performance obligation. Disaggregation of Revenue The Company generated revenue for the three months ended September 30, 2021 and 2020 by delivering: (i) Software Services, consisting primarily of VR/AR software projects, solutions and consulting services, and (ii) Software Licenses & SaaS, consisting primarily of VR and AR software licenses or SaaS. The Company currently generates its revenues primarily from customers in the United States. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Revenue for Software Services projects and solutions is recognized at the point of time in which the customer obtains control of the project, customer accepts delivery and confirms completion of the project. Revenue for Software Services consulting services and website maintenance is recognized at the point of time in which the Company performs the services, typically on a monthly retainer basis. Revenue for Software License and SaaS is recognized at the point of time in which the Company delivers the software and customer accepts delivery. If there are contractually stated ongoing service obligations to be performed during the term of the Software License or SaaS contract, then revenues are recognized ratably over the term of the contract. Timing of Revenue The timing of revenue recognition for the three months ended September 30, 2021 and 2020 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2021 2020 For the Three Months Ended September 30, 2021 2020 Products transferred at a point in time $ 955,751 $ 193,175 Products and services transferred over time 66,782 66,752 Total Revenue $ 1,022,533 $ 259,927 Remaining Performance Obligations Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For Software Services project contracts, the Company generally invoices customers after the project has been delivered and accepted by the customer. Software Service project contracts typically consist of designing and programming software for the customer. In most cases, there is only one performance obligation, and revenue is recognized upon completion, delivery and customer acceptance. In certain instances one contract may include multiple distinct projects that can each be implemented and operated independently of subsequent projects in the contract. In such cases, the Company accounts for these distinct projects as separate performance obligations and recognizes revenue upon the completion of each project or obligation, its delivery and customer acceptance. For Software Services consulting or retainer contracts, the Company generally invoices customers monthly at the beginning of each month in advance for services to be performed in the following month. The sole performance obligation is satisfied when the services are performed. Software Services consulting or retainer contracts typically consist of ongoing support for a customer’s software or specified business practices. For Software License or SaaS contracts, the Company generally invoices customers when the software has been delivered to and accepted by the customer, which is also when the performance obligation is satisfied. For multi-period Software License or SaaS contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Software License or SaaS contracts consist of providing clients with software designed by the Company. For Software License or SaaS contracts, there are generally no ongoing support obligations unless specified in the contract (becoming a Software Service). THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 Deferred revenue is comprised mainly of software project contract performance obligations not completed. Unfulfilled performance obligations represent amounts expected to be earned by the Company on executed contracts. As of September 30, 2021, the Company had approximately $ 1.20 | Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual and Augmented Reality projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual and Augmented Reality software that is sold either as a license or as a SaaS subscription. The Company adopted the new accounting standard, Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers The Company applies the following steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; ● recognize revenue as the performance obligation is satisfied; ● determine that collection is reasonably assured THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Any unrecognized portion of revenue and any corresponding unrecognized expenses are presented as deferred revenue and deferred costs, respectively, in the accompanying consolidated balance sheet. Deferred costs include cash and equity based payroll costs, and may include payments to vendors. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales taxes and other taxes are excluded from revenues. Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products/services. Determining whether products/services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Further, judgment may be required to determine the standalone selling price for each distinct performance obligation. Disaggregation of Revenue The Company generated revenue for the years ended June 30, 2021 and 2020 by delivering: (i) Software Services, consisting primarily of VR/AR software projects, solutions and consulting services, and (ii) Software Licenses & SaaS, consisting primarily of VR and AR software licenses or SaaS. The Company currently generates its revenues primarily from customers in the United States. Revenue for Software Services projects and solutions is recognized at the point of time in which the customer obtains control of the project, customer accepts delivery and confirms completion of the project. Revenue for Software Services consulting services and website maintenance is recognized at the point of time in which the Company performs the services, typically on a monthly retainer basis. Revenue for Software License and SaaS is recognized at the point of time in which the Company delivers the software and customer accepts delivery. If there are contractually stated ongoing service obligations to be performed during the term of the Software License or SaaS contract, then revenues are recognized ratably over the term of the contract. As detailed in the Company’s Consolidated Statement of Operations, the following is a disaggregation of the Company’s revenue by major source for the years ended June 30, 2021 and 2020: SCHEDULE OF DISAGGREGATION OF REVENUE For the Years Ended June 30, 2021 2020 Software Services $ 3,082,528 $ 1,777,447 Software License and Software as a Service 338,967 167,868 Total Revenue $ 3,421,495 $ 1,945,315 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Timing of Revenue As the Company began adopting ASC 606 in July 2020, the timing of revenue recognition for periods prior to the adoption is not required: SCHEDULE OF TIMING REVENUE RECOGNITION For the Year Ended June 30, 2021 Products transferred at a point in time $ 2,967,586 Products and services transferred over time 453,909 Total Revenue $ 3,421,495 Remaining Performance Obligations Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For Software Services project contracts, the Company generally invoices customers after the project has been delivered and accepted by the customer. Software Service project contracts typically consist of designing and programming software for the customer. In most cases, there is only one performance obligation, and revenue is recognized upon completion, delivery and customer acceptance. In certain instances one contract may include multiple distinct projects that can each be implemented and operated independently of subsequent projects in the contract. In such cases, the Company accounts for these distinct projects as separate performance obligations and recognizes revenue upon the completion of each project or obligation, its delivery and customer acceptance. For Software Services consulting or retainer contracts, the Company generally invoices customers monthly at the beginning of each month in advance for services to be performed in the following month. The sole performance obligation is satisfied when the services are performed. Software Services consulting or retainer contracts typically consist of ongoing support for a customer’s software or specified business practices. For Software License or SaaS contracts, the Company generally invoices customers when the software has been delivered to and accepted by the customer, which is also when the performance obligation is satisfied. For multi-period Software License or SaaS contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Software License or SaaS contracts consist of providing clients with software designed by the Company. For Software License or SaaS contracts, there are generally no ongoing support obligations unless specified in the contract (becoming a Software Service). Deferred revenue is comprised mainly of software project contract performance obligations not completed. Unfulfilled performance obligations represent amounts expected to be earned by the Company on executed contracts. As of June 30, 2021, the Company had approximately $ 1.23 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 Prior to the adoption of ASC 606 at July 1, 2020, the Company’s revenue recognition was as follows: Software Service Revenue The Company generates software related revenues from services performed for: Virtual and Augmented Reality projects, consulting retainers, and ongoing website maintenance and support. Software service revenue generated from Virtual and Augmented Reality projects is recognized after delivery of the project has occurred, when persuasive evidence of an arrangement exists, the fee is fixed or determinable, and collection is reasonably assured. Any unrecognized portion of project revenue and any corresponding unrecognized expenses are presented as deferred revenue and deferred costs, respectively, in the accompanying consolidated balance sheets. Deferred costs include cash and equity based payroll costs, and may include payments to vendors. Software service revenue generated from consulting retainers is typically billed in advance for services performed and is recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, services have been performed, and collection is reasonably assured. Software service revenue generated from ongoing website maintenance and support services is typically billed in arrears for services performed and is recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, and collection is reasonably assured. Software License and Software as a Service Revenue The Company derives revenue from software as-a-service subscriptions and software licenses. Upon delivery of the software to customers, revenue is recognized ratably over the term of the contract or arrangement. The unrecognized portion of this revenue and any corresponding unrecognized expenses are presented as deferred revenue and deferred costs, respectively, in the accompanying consolidated balance sheets. |
Employee Stock-Based Compensation | Employee Stock-Based Compensation The Company recognizes stock-based compensation expense related to grants to employees or service providers based on grant date fair values of common stock or the stock options, which are amortized over the requisite period, as well as forfeitures as they occur. The Company values the options using the Black-Scholes Merton (“Black Scholes”) method utilizing various inputs such as expected term, expected volatility and the risk-free rate. The expected term reflects the application of the simplified method, which is the weighted average of the contractual term of the grant and the vesting period for each tranche. Expected volatility is derived from a weighted average of volatility inputs for the Company since its IPO. Prior to its IPO, expected volatility is derived from a weighted average of volatility inputs for comparable software and technology service companies The risk-free rate is based on the implied yield of U.S. Treasury notes as of the grant date with a remaining term approximately equal to the expected life of the award. | Employee Stock-Based Compensation The Company recognizes stock-based compensation expense related to grants to employees or service providers based on grant date fair values of common stock or the stock options, which are amortized over the requisite period, as well as forfeitures as they occur. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 The Company values the options using the Black-Scholes Merton (“Black Scholes”) method utilizing various inputs such as expected term, expected volatility and the risk-free rate. The expected term reflects the application of the simplified method, which is the weighted average of the contractual term of the grant and the vesting period for each tranche. Expected volatility is derived from a weighted average of volatility inputs for comparable software and technology service companies. The risk-free rate is based on the implied yield of U.S. Treasury notes as of the grant date with a remaining term approximately equal to the expected life of the award. |
Research and Development Costs | Research and Development Costs Research and development expenses are expensed as incurred, and include payroll, employee benefits and stock-based compensation expense. Research and development expenses also include third-party development and programming costs. Given the emerging industry and uncertain market environment the Company operates in, research and development costs are not capitalized. | Research and Development Costs Research and development expenses are expensed as incurred, and include payroll, employee benefits and stock-based compensation expense. Research and development expenses also include third-party development and programming costs. Given the emerging industry and uncertain market environment the Company operates in, research and development costs are not capitalized. |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company establishes a valuation allowance if it is more likely than not that the deferred tax assets will not be recovered based on an evaluation of objective verifiable evidence. For tax positions that are more likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2021 AND 2020 The Company’s policy for recording interest and penalties associated with audits is to record such expense as a component of income tax expense. There were no amounts accrued for penalties or interest for the three months ended September 30, 2021 and 2020. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position. | Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company establishes a valuation allowance if it is more likely than not that the deferred tax assets will not be recovered based on an evaluation of objective verifiable evidence. For tax positions that are more likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes The Company’s policy for recording interest and penalties associated with audits is to record such expense as a component of income tax expense. There were no amounts accrued for penalties or interest for the years ended June 30, 2021 and 2020. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential common shares include the issuance of potential shares of common stock for outstanding stock options and convertible debt. | Earnings Per Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock method. Dilutive potential common shares include the issuance of potential shares of common stock for outstanding stock options and convertible debt. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 |
Recently Issued Pronouncements | Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company’s financial statements. | Recently Issued Pronouncements Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842). Financial Instruments – Credit Losses In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates (ASC 326). The Company will be required to use a forward-looking expected credit loss model for accounts receivable, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities, if any, will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities The Company does not expect to adopt this standard prior to July 1, 2023. The Company is currently evaluating the impact of this standard on its consolidated financial statements. Income Taxes In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, Income Taxes THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 AND 2020 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
SCHEDULE OF TIMING REVENUE RECOGNITION | The timing of revenue recognition for the three months ended September 30, 2021 and 2020 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2021 2020 For the Three Months Ended September 30, 2021 2020 Products transferred at a point in time $ 955,751 $ 193,175 Products and services transferred over time 66,782 66,752 Total Revenue $ 1,022,533 $ 259,927 | As the Company began adopting ASC 606 in July 2020, the timing of revenue recognition for periods prior to the adoption is not required: SCHEDULE OF TIMING REVENUE RECOGNITION For the Year Ended June 30, 2021 Products transferred at a point in time $ 2,967,586 Products and services transferred over time 453,909 Total Revenue $ 3,421,495 |
SCHEDULE OF DISAGGREGATION OF REVENUE | As detailed in the Company’s Consolidated Statement of Operations, the following is a disaggregation of the Company’s revenue by major source for the years ended June 30, 2021 and 2020: SCHEDULE OF DISAGGREGATION OF REVENUE For the Years Ended June 30, 2021 2020 Software Services $ 3,082,528 $ 1,777,447 Software License and Software as a Service 338,967 167,868 Total Revenue $ 3,421,495 $ 1,945,315 |
ASSET ACQUISTION (Tables)
ASSET ACQUISTION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF ASSET ACQUISITION | SCHEDULE OF ASSET ACQUISITION As of September 30, 2021 Value ($) Useful Life Intangible Assets Customer Relationships $ 250,000 3 Technology 250,000 3 Less: Accumulated Amortization (20,833 ) Intangible Assets, net $ 479,167 Goodwill $ 250,000 N/A |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Equity [Abstract] | ||
SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL ASSUMPTIONS | Stock options have been recorded at their fair value. The Black-Scholes option-pricing model assumptions used to value the issuance of stock options under the Plan, are noted in the following table: SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL ASSUMPTIONS Three Months Ended Three Months Ended Weighted average expected terms (in years) 5.4 5.1 Weighted average expected volatility 146.1 % 117.3 % Weighted average risk-free interest rate 0.9 % 0.3 % Expected dividend yield 0.0 % 0.0 % | Stock options have been recorded at their fair value. The Black-Scholes option-pricing model assumptions used to value the issuance of stock options under the Plan, are noted in the following table: SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL ASSUMPTIONS Year Ended Year Ended Year Ended Year Ended Weighted average expected terms (in years) 5.3 5.3 Weighted average expected volatility 126.6 % 117.3 % Weighted average risk-free interest rate 0.5 % 1.4 % Expected dividend yield 0 % 0 % |
SUMMARY OF STOCK OPTION ACTIVITY | The following is a summary of the Company’s stock option activity for the three months ended September 30, 2021 and 2020: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2021 4,740,910 $ 3.40 8.5 $ 7,893,467 Options Granted 94,666 7.11 9.9 423,923 Options Exercised (392,394 ) 2.14 7.2 (3,720,795 ) Options Forfeited / Cancelled (82,838 ) 4.61 9.5 (563,393 ) Outstanding at September 30, 2021 4,360,344 $ 3.58 8.6 $ 16,283,017 Exercisable at September 30, 2021 4,143,324 $ 3.47 8.5 $ 15,852,955 Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2020 4,092,593 $ 3.19 8.4 $ 5,553,916 Options Granted 108,324 4.50 9.9 - Options Exercised - - - - Options Forfeited / Cancelled (16,809 ) 4.33 9.4 (2,828 ) Outstanding at September 30, 2020 4,184,108 $ 3.22 8.4 $ 5,469,339 Exercisable at September 30, 2020 3,840,479 $ 3.14 8.4 $ 5,337,626 | The following is a summary of the Company’s stock option activity for the years ended June 30, 2021 and 2020: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2019 3,408,452 $ 2.97 8.5 $ 3,721,339 Options Granted 766,455 4.26 9.5 182,328 Options Exercised - - - - Options Forfeited / Cancelled (82,314 ) 3.84 9.6 (53,977 ) Outstanding at June 30, 2020 4,092,593 $ 3.19 8.4 $ 5,553,916 Exercisable at June 30, 2020 3,581,514 $ 3.06 8.3 $ 5,365,512 Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2020 4,092,593 $ 3.19 8.4 $ 5,553,916 Options Granted 766,419 4.66 9.7 383,210 Options Exercised - - - - Options Forfeited / Cancelled (118,102 ) 4.28 8.9 (89,956 ) Outstanding at June 30, 2021 4,740,910 $ 3.40 8.5 $ 7,893,467 Exercisable at June 30, 2021 4,346,734 $ 3.29 8.4 $ 7,659,692 |
SCHEDULE OF STOCK OPTION-BASED EXPENSE | The Company’s stock option-based expense for the three months ended September 30, 2021 and 2020 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE Three Months Ended Three Months Ended Stock option-based expense : Research and development expenses $ 347,597 $ 403,912 General and administrative expenses 66,643 98,163 Sales and marketing expenses 127,992 99,300 Cost of goods sold 22,764 45,687 Board option expense 88,619 42,751 Total $ 653,615 $ 689,813 | The Company’s stock option-based expense for the years ended June 30, 2021 and 2020 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE Year Ended Year Ended Stock option-based expense : Research and development expenses $ 1,381,168 $ 1,266,911 General and administrative expenses $ 373,506 570,765 Sales and marketing expenses $ 477,561 293,226 Cost of goods sold $ 526,156 236,825 Board option expense $ 187,096 182,794 Total $ 2,945,487 $ 2,550,521 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE | The following table presents the computation of basic and diluted net loss per common share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Numerator: Net loss $ (1,656,761 ) $ (1,277,324 ) Denominator: Weighted-average common shares outstanding 9,967,821 7,039,928 Basic and diluted net loss per share $ (0.17 ) $ (0.18 ) | The following table presents the computation of basic and diluted net loss per common share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE Year Ended Year Ended Year Ended Year Ended Numerator: Net loss $ (6,091,687 ) $ (4,993,350 ) Denominator: Weighted-average common shares outstanding for basic and diluted net loss per share 7,259,249 6,923,506 Basic and diluted net loss per share $ (0.84 ) $ (0.72 ) |
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES | Potentially dilutive securities that were not included in the calculation of diluted net loss per share attributable to common stockholders because their effect would be anti-dilutive are as follows (in common equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES At September 30, 2021 At September 30, 2020 Stock Options 4,360,344 4,184,108 Warrants 87,500 - Convertible Notes - 296,111 Total 4,447,844 4,480,219 | Potentially dilutive securities that were not included in the calculation of diluted net loss per share attributable to common stockholders because their effect would be anti-dilutive are as follows (in common equivalent shares): SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES At At Stock Options 4,740,910 4,092,593 Convertible Notes 324,150 296,111 Total 5,065,060 4,388,704 |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
SCHEDULE OF DEFERRED TAX ASSETS | The Company’s deferred tax assets as of September 30 2021 and 2020 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS As of September 30, As of September 30, 2021 2020 Deferred tax assets: Net-operating loss carryforward $ 4,269,910 $ 2,961,194 Stock-based compensation 586,042 394,742 Total Deferred Tax Assets 4,855,952 3,355,936 Valuation allowance (4,855,952 ) (3,355,936 ) Deferred Tax Asset, Net $ - $ - | The Company’s deferred tax assets as of June 30, 2021 and 2020 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS As of As of June 30, 2021 June 30, 2020 Deferred tax assets: Net-operating loss carryforward $ 3,923,012 $ 2,811,156 Stock-based compensation 536,265 348,013 Total Deferred Tax Assets 4,459,277 3,159,169 Valuation allowance (4,459,277 ) (3,159,169 ) Deferred Tax Asset, Net $ - $ - |
SCHEDULE OF EXPECTED TAX EXPENSE (BENEFIT) BASED ON US FEDERAL STATUTORY RATE | The expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with actual tax expense (benefit) as follows: SCHEDULE OF EXPECTED TAX EXPENSE (BENEFIT) BASED ON US FEDERAL STATUTORY RATE For the Three Months Ended September 30, For the Three Months Ended September 30, 2021 2020 Statutory Federal Income Tax Rate 21.00 % 21.00 % State and Local Taxes, Net of Federal Tax Benefit (13.56 )% (13.56 )% Stock Based Compensation Expense (ISO) 10.61 % 19.15 % Change in Valuation Allowance (18.05 )% (26.59 )% Income Taxes Provision (Benefit) 0.00 0.00 | The expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with actual tax expense (benefit) as follows: SCHEDULE OF EXPECTED TAX EXPENSE (BENEFIT) BASED ON US FEDERAL STATUTORY RATE For the Year Ended For the Year Ended June 30, 2021 June 30, 2020 Statutory Federal Income Tax Rate (21.00 )% (21.00 )% State and Local Taxes, Net of Federal Tax Benefit (13.56 )% (13.56 )% Stock Based Compensation Expense (ISO) 13.20 % 14.50 % Change in Valuation Allowance 21.36 % 20.06 % Income Taxes Provision (Benefit) 0.00 0.00 |
EQUIPMENT, NET (Tables)
EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF EQUIPMENT, NET | Equipment, primarily comprised of computers and hardware, consisted of the following: SCHEDULE OF EQUIPMENT, NET Value ($) Useful Life (Years) Value ($) Useful Life (Years) As of June 30, 2021 As of June 30, 2020 Value ($) Useful Life (Years) Value ($) Useful Life (Years) Equipment $ 96,963 3 $ 105,239 3 Less: accumulated depreciation (54,791 ) (64,015 ) Balance $ 42,172 $ 41,224 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SCHEDULE OF CONDENSED BALANCE SHEET REFLECTING PROFORMA EFFECT | The following is a condensed balance sheet reflecting the proforma effect of the IPO on the June 30, 2021 balance sheet. SCHEDULE OF CONDENSED BALANCE SHEET REFLECTING PROFORMA EFFECT As Reported at Proforma for IPO Cash and cash equivalents $ 1,771,929 $ 13,728,429 Other current assets 1,406,939 833,296 Equipment, net 42,172 42,172 Total assets $ 3,221,040 $ 14,603,897 Total current liabilities $ 2,339,037 $ 2,004,037 Convertible promissory notes, net 1,429,953 - Other long term liability 623,828 623,828 Total liabilities 4,392,818 2,627,865 Total stockholders’ equity (deficit) (1,171,778 ) 11,976,032 Total liabilities and stockholders’ equity (deficit) $ 3,221,040 $ 14,603,897 |
LIQUIDITY AND CAPITAL RESOURC_2
LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($) | Nov. 02, 2021 | Jul. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 |
Subsequent Event [Line Items] | |||||||
Net loss | $ 1,656,761 | $ 1,277,324 | $ 6,091,687 | $ 4,993,350 | |||
Share issued price per share | $ 7 | ||||||
Gross proceeds from issuance initial public offering | $ 13,400,000 | ||||||
Net proceeds from issuance initial public offering | $ 11,800,000 | 11,821,364 | |||||
Cash and Cash Equivalents, at Carrying Value | 12,567,632 | 1,771,929 | 1,034,846 | $ 1,771,929 | |||
Net cash used in operating activities | 1,210,000 | ||||||
Net cash used in operating activities | 1,053,136 | 160,542 | 1,209,616 | 2,024,275 | |||
Proceeds from issuance of common stock and convertible debt | 8,880,000 | ||||||
Proceeds from issuance of common stock | 10,820 | 346,010 | 7,000 | 1,820,000 | |||
Cash | 1,770,000 | 1,030,000 | 1,770,000 | ||||
Revenues | $ 1,022,533 | $ 259,927 | 3,421,495 | 1,945,315 | |||
Proceeds from PPP loan | 548,885 | ||||||
Cash position | 13,000,000 | $ 13,000,000 | |||||
Contracted revenue backlog | $ 1,500,000 | ||||||
Payment Protection Program One [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from PPP loan | 549,000 | ||||||
Payment Protection Program Two [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from PPP loan | $ 624,000 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Share issued price per share | $ 7 | ||||||
Gross proceeds from issuance initial public offering | $ 13,400,000 | ||||||
Net proceeds from issuance initial public offering | $ 13,600,000 | $ 11,800,000 | |||||
Cash and Cash Equivalents, at Carrying Value | $ 26,000,000 |
SCHEDULE OF TIMING REVENUE RECO
SCHEDULE OF TIMING REVENUE RECOGNITION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,022,533 | $ 259,927 | $ 3,421,495 | $ 1,945,315 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 955,751 | 193,175 | 2,967,586 | |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 66,782 | $ 66,752 | $ 453,909 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Product Information [Line Items] | ||||
Allowance for doubtful accounts receivable | $ 0 | $ 0 | ||
Unfulfilled performance obligations | $ 1,200,000 | $ 1,230,000 | ||
Tax benefit settlement description | greater than 50% | greater than 50% | ||
Goodwill | $ 250,000 | $ 0 | $ 0 | |
Two Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 70.00% | 49.00% | ||
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 71.00% | |||
Customer One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 56.00% | 26.00% | ||
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 57.00% | |||
Customer Two [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 14.00% | 23.00% | ||
Customer Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 14.00% | |||
Four Other Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 53.00% | 96.00% | ||
Other Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 19.00% | 35.00% | ||
Other Customer Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 13.00% | 35.00% | ||
Other Customer Three [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 11.00% | 14.00% | ||
Other Customer Four [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10.00% | 12.00% | ||
One Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 76.00% | |||
Other Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 13.00% |
SCHEDULE OF ASSET ACQUISITION (
SCHEDULE OF ASSET ACQUISITION (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (20,833) | |
Intangible assets, net | 479,167 | |
Goodwill | 250,000 | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Technology | $ 250,000 | |
Intangible assets useful life (years) | 3 years | |
Technology-Based Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Technology | $ 250,000 | |
Intangible assets useful life (years) | 3 years |
ASSET ACQUISTION (Details Narra
ASSET ACQUISTION (Details Narrative) $ in Thousands | 1 Months Ended |
Aug. 31, 2021USD ($)shares | |
Business Combination and Asset Acquisition [Abstract] | |
Purchase of assets consideration value | $ | $ 750 |
Common stock purchase price | shares | 77,264 |
CONTINGENT ACQUISITION LIABIL_2
CONTINGENT ACQUISITION LIABILITY (Details Narrative) - USD ($) | Jul. 02, 2021 | Aug. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||||
Shares issued | 1,910,000 | |||
Shares issued price per share | $ 7 | |||
Kabaq3D Technologies, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Additional acquisition cost | $ 750,000 | |||
Kabaq3D Technologies, LLC [Member] | Forecast [Member] | ||||
Business Acquisition [Line Items] | ||||
Additional acquisition cost | $ 750,000 | |||
Kabaq3D Technologies, LLC [Member] | Equity Option [Member] | ||||
Business Acquisition [Line Items] | ||||
Shares issued | 375,000 | |||
Shares issued price per share | $ 2 | |||
KreatAR LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Additional acquisition cost | $ 500,000 | |||
KreatAR LLC [Member] | Forecast [Member] | ||||
Business Acquisition [Line Items] | ||||
Additional acquisition cost | $ 500,000 | |||
Early Adopter.Com [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acqusition, share price | $ 3.25 | |||
Contingent acquisition liability | $ 96,800 | $ 47,000 | ||
Stock issued during peirod shares acquisitions | 32,000 |
DEBT (Details Narrative)
DEBT (Details Narrative) - USD ($) | Jul. 02, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | May 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Short-term Debt [Line Items] | |||||||||||||
Stock issued during period value | $ 10,820 | $ 346,010 | $ 7,000 | ||||||||||
Convertible promissory notes | $ 1,429,953 | $ 1,429,953 | 1,429,953 | ||||||||||
Loss on conversion of convertible notes | $ (279,730) | (515,464) | |||||||||||
Share issued price per share | $ 7 | ||||||||||||
Shares issued | 1,910,000 | ||||||||||||
Gain loss on debt | 548,885 | ||||||||||||
Proceeds from debt | 548,885 | ||||||||||||
IPO [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt conversion converted instrument shares | 324,150 | ||||||||||||
Loss on conversion of convertible notes | $ 280,000 | ||||||||||||
Share issued price per share | $ 7 | ||||||||||||
Convertible Notes Payable [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Proceeds from issuance of unsecured debt | $ 1,475,000 | $ 1,330,000 | $ 1,330,000 | ||||||||||
Debt instrument maturity date, description | two-year term | three-year | |||||||||||
Debt instrument interest rate percentage | 10.00% | 10.00% | 10.00% | 10.00% | |||||||||
Debt interest payment description | during the term into common stock of the Company at a fixed price of $4.50/share, or approximately 295,000 shares of common stock upon full conversion | during the term into common stock of the Company at a fixed price of $4.50/share, or approximately 295,000 shares of common stock upon full conversion. | |||||||||||
Debt conversion converted instrument shares | 295,000 | 300,000 | 295,000 | 324,150 | 300,000 | 332,000 | 295,000 | ||||||
Original issue discount on notes | $ 149,000 | ||||||||||||
Stock issued during period value | $ 192,000 | $ 1,210,000 | $ 1,210,000 | $ 170,000 | |||||||||
Debt instrument conversion price per share | $ 4,000,000 | $ 4 | $ 4,000,000 | $ 4,000,000 | |||||||||
Convertible promissory notes | $ 117,000 | $ 117,000 | $ 117,000 | ||||||||||
Debt instrument maturity date | Mar. 5, 2023 | ||||||||||||
Share issued price per share | $ 5 | $ 5 | $ 4.50 | ||||||||||
Debt instrument term | 2 years | 3 years | |||||||||||
Shares issued | 44,000 | 45,000 | |||||||||||
Convertible Notes Payable [Member] | Maximum [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt instrument conversion price per share | $ 4.50 | 4.50 | |||||||||||
Convertible Notes Payable [Member] | Minimum [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt instrument conversion price per share | $ 4 | $ 4 | $ 4 | ||||||||||
Convertible Notes Payable [Member] | Executives And Independent Members [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt instrument face amount | $ 200,000 | ||||||||||||
Convertible Notes Payable [Member] | IPO [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Original issue discount on notes | $ 8,000 | $ 8,000 | $ 8,000 | ||||||||||
Debt instrument conversion price per share | $ 4.25 | $ 5 | $ 4.25 | $ 5 | $ 4.25 | ||||||||
Loss on conversion of convertible notes | $ 18,000 | $ 262,000 | |||||||||||
Convertible Notes Payable [Member] | Additional Interest [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Original issue discount on notes | $ 48,500 | 96,900 | |||||||||||
Convertible Notes Payable [Member] | Second Year Of Notes [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Original issue discount on notes | 162,000 | 162,000 | $ 162,000 | $ 162,000 | $ 162,000 | ||||||||
Convertible promissory notes | $ 1,313,000 | $ 1,313,000 | $ 1,313,000 | $ 1,313,000 | $ 1,313,000 | ||||||||
Share issued price per share | $ 5 | $ 5 | $ 5 | $ 5 | $ 5 | ||||||||
Convertible Notes Payable [Member] | First Two Years Of Interes Prepayment [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Stock issued during period value | $ 258,000 | ||||||||||||
Share issued price per share | $ 4.50 | ||||||||||||
Shares issued | 57,000 | ||||||||||||
Convertible Notes Payable [Member] | Third Year Interest [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt instrument interest rate percentage | 10.00% | 10.00% | |||||||||||
Debt interest payment description | during the year ended June 30, 2021, reflecting the reduction of the Notes conversion price from $4.50/share to $4.00/share, the issuance of Year 3 Interest (10%) paid in common stock (at $4.00/share instead of $4.50/share), and the write-off of the remaining related pre-paid interest and original issue discount expenses. | ||||||||||||
Stock issued during period value | $ 122,000 | ||||||||||||
Debt instrument term | 3 years | ||||||||||||
Shares issued | 30,000 | ||||||||||||
Gain loss on debt | $ 515,500 | ||||||||||||
Convertible Notes Payable [Member] | Frist Year Of Interest Prepayment [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Stock issued during period value | $ 147,500 | ||||||||||||
Shares issued | 29,500 | ||||||||||||
Paycheck Protection Program [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Debt instrument maturity date, description | February 2026 | ||||||||||||
Debt instrument interest rate percentage | 1.00% | ||||||||||||
Proceeds from debt | $ 620,000 | $ 550,000 | |||||||||||
Economic Injury Disaster Loan [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Proceeds from debt | $ 10,000 |
SCHEDULE OF BLACK-SCHOLES OPTIO
SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL ASSUMPTIONS (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity [Abstract] | ||||
Weighted average expected terms (in years) | 5 years 4 months 24 days | 5 years 1 month 6 days | 5 years 3 months 18 days | 5 years 3 months 18 days |
Weighted average expected volatility | 146.10% | 117.30% | 126.60% | 117.30% |
Weighted average risk-free interest rate | 0.90% | 0.30% | 0.50% | 1.40% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity [Abstract] | ||||
Options Outstanding, Beginning balance | 4,740,910 | 4,092,593 | 4,092,593 | 3,408,452 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 3.40 | $ 3.19 | $ 3.19 | $ 2.97 |
Weighted Average Remaining Contractual Term (Yrs), Outstanding Beginning | 8 years 6 months | 8 years 4 months 24 days | 8 years 4 months 24 days | 8 years 6 months |
Intrinsic Value, Outstanding Beginning balance | $ 7,893,467 | $ 5,553,916 | $ 5,553,916 | $ 3,721,339 |
Options, Granted | 94,666 | 108,324 | 766,419 | 766,455 |
Weighted Average Exercise Price, Options Granted | $ 7.11 | $ 4.50 | $ 4.66 | $ 4.26 |
Weighted Average Remaining Contractual Term (Yrs), Options Granted | 9 years 10 months 24 days | 9 years 10 months 24 days | 9 years 8 months 12 days | 9 years 6 months |
Intrinsic Value, Options Granted | $ 423,923 | $ 383,210 | $ 182,328 | |
Options, Exercised | (392,394) | |||
Weighted Average Exercise Price, Options Exercised | $ 2.14 | |||
Weighted Average Remaining Contractual Term (Yrs), Options Exercised | 7 years 2 months 12 days | |||
Intrinsic Value, Options Exercised | $ (3,720,795) | |||
Options, Forfeited/Cancelled | (82,838) | (16,809) | (118,102) | (82,314) |
Weighted Average Exercise Price, Options Forfeited/Cancelled | $ 4.61 | $ 4.33 | $ 4.28 | $ 3.84 |
Weighted Average Remaining Contractual Term (Yrs), Options Forfeited/Cancelled | 9 years 6 months | 9 years 4 months 24 days | 8 years 10 months 24 days | 9 years 7 months 6 days |
Intrinsic Value, Options Forfeited/Cancelled | $ (563,393) | $ (2,828) | $ 89,956 | $ 53,977 |
Options Outstanding, Ending balance | 4,360,344 | 4,184,108 | 4,740,910 | 4,092,593 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ 3.58 | $ 3.22 | $ 3.40 | $ 3.19 |
Weighted Average Remaining Contractual Term (Yrs), Outstanding Ending | 8 years 7 months 6 days | 8 years 4 months 24 days | 8 years 6 months | 8 years 4 months 24 days |
Intrinsic Value, Outstanding Ending balance | $ 16,283,017 | $ 5,469,339 | $ 7,893,467 | $ 5,553,916 |
Options Exercisable, Ending balance | 4,143,324 | 3,840,479 | 4,346,734 | 3,581,514 |
Weighted Average Exercise Price, Exercisable, Ending balance | $ 3.47 | $ 3.14 | $ 3.29 | $ 3.06 |
Weighted Average Remaining Contractual Term (Yrs), Exercisable, Ending | 8 years 6 months | 8 years 4 months 24 days | 8 years 4 months 24 days | 8 years 3 months 18 days |
Intrinsic Value, Exercisable Ending balance | $ 15,852,955 | $ 5,337,626 | $ 7,659,692 | $ 5,365,512 |
Options, Exercised | 392,394 | |||
Intrinsic Value, Options Forfeited/Cancelled | $ 563,393 | $ 2,828 | $ (89,956) | $ (53,977) |
SCHEDULE OF STOCK OPTION-BASED
SCHEDULE OF STOCK OPTION-BASED EXPENSE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total | $ 653,615 | $ 689,813 | $ 2,945,487 | $ 2,550,521 |
Research and Development Expense [Member] | ||||
Total | 347,597 | 403,912 | 1,381,168 | 1,266,911 |
General and Administrative Expense [Member] | ||||
Total | 66,643 | 98,163 | 373,506 | 570,765 |
Selling and Marketing Expense [Member] | ||||
Total | 127,992 | 99,300 | 477,561 | 293,226 |
Cost of Sales [Member] | ||||
Total | 22,764 | 45,687 | 526,156 | 236,825 |
Board Option Expense [Member] | ||||
Total | $ 88,619 | $ 42,751 | $ 187,096 | $ 182,794 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | Jul. 02, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2021 | Apr. 30, 2021 |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares Issued, Price Per Share | $ 7 | ||||||||||||
Shares issued | 1,910,000 | ||||||||||||
Proceeds from Issuance or Sale of Equity | $ 11,820,000 | ||||||||||||
Warrant exercisable description | The warrant is valued at approximately $520,000 based on the Black-Scholes options pricing model method with the following assumptions: 5 year expected term, 129% expected volatility, 0.87% risk-free rate and 0% expected dividend yield. | ||||||||||||
Loss on conversion of convertible notes | $ (279,730) | $ (515,464) | |||||||||||
Proceeds from sale of common stock | 10,820 | 346,010 | 7,000 | $ 1,820,000 | |||||||||
Stock issued during period value | $ 10,820 | $ 346,010 | $ 7,000 | ||||||||||
Legacy acquisition obligation | $ 750,000 | ||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 7.11 | $ 4.50 | $ 4.66 | $ 4.26 | |||||||||
Options granted, fair value | 610,000 | 400,000 | 2.94 | 2.70 | |||||||||
Stock options exercise price per share | $ 2.14 | ||||||||||||
General and administration expense | $ 779,729 | $ 335,998 | $ 2,220,811 | $ 1,835,147 | |||||||||
Common stock shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||
Common stock par value per share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Common stock shares issued | 7,579,285 | 10,291,638 | 7,579,285 | 7,579,285 | 7,035,771 | 7,579,285 | |||||||
Common stock shares outstanding | 7,579,285 | 10,291,638 | 7,579,285 | 7,579,285 | 7,035,771 | 7,579,285 | |||||||
Preferred stock shares issued | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Preferred stock shares outstanding | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Subsequent Event [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares Issued, Price Per Share | $ 7 | ||||||||||||
Shares issued | 1,912,500 | ||||||||||||
2016 Equity Incentive Plan [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Stock available for issuance | 5,260,000 | 5,640,000 | 5,260,000 | 5,260,000 | 910,000 | 5,260,000 | |||||||
Prepaid expenses | $ 58,000 | $ 29,000 | $ 58,000 | $ 58,000 | $ 170,000 | $ 58,000 | |||||||
General and administration expense | 29,000 | 116,000 | 116,000 | ||||||||||
Unrecognized compensation expense to employees and vendors | $ 1,500,000 | $ 1,060,000 | $ 1,190,000 | $ 1,500,000 | $ 1,500,000 | $ 1,620,000 | $ 1,500,000 | ||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 10 months 6 days | 9 months 29 days | 1 year 1 month 6 days | 1 year 7 days | |||||||||
Stock options intrinsic value per share | $ 7.29 | $ 4.50 | $ 5 | $ 4.50 | |||||||||
2016 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Aggregate number of common stock shares reserved for future issuance | 10,000,000 | 5,000,000 | 10,000,000 | ||||||||||
To Satisfy Contingent Liabilities [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued | 17,000 | 13,000 | 20,000 | ||||||||||
Stock issued during period value | $ 46,000 | $ 67,000 | $ 92,000 | ||||||||||
Legacy Acquisition Obligation [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2 | ||||||||||||
Common Stock [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued | 2,423 | 76,891 | 1,556 | ||||||||||
Stock issued during period value | $ 2 | $ 77 | $ 1 | ||||||||||
Common Stock [Member] | Acquisition [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued | 77,000 | ||||||||||||
Stock issued during period value | $ 750,000 | ||||||||||||
Common Stock [Member] | Legacy Acquisition Obligation [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued | 375,000 | ||||||||||||
Convertible Notes Payable [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares Issued, Price Per Share | $ 5 | $ 4.50 | |||||||||||
Shares issued | 44,000 | 45,000 | |||||||||||
Stock issued during period shares | 295,000 | 300,000 | 295,000 | 324,150 | 300,000 | 332,000 | 295,000 | ||||||
Stock issued during period value | $ 192,000 | $ 1,210,000 | $ 1,210,000 | $ 170,000 | |||||||||
New Convertible Promissory Notes [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued | 74,000 | ||||||||||||
Convertible Promissory Notes [Member] [Default Label] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued | 102,000 | ||||||||||||
Investor [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares Issued, Price Per Share | $ 4.50 | $ 7 | $ 4.50 | $ 4.50 | $ 4.50 | $ 4.50 | |||||||
Shares issued | 1,910,000 | 2,400 | 76,900 | 1,600 | |||||||||
Proceeds from sale of common stock | $ 11,820,000 | $ 10,800 | $ 346,000 | $ 7,000 | |||||||||
Vendors [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Stock issued during period shares for services | 6,000 | 6,700 | 28,800 | 23,700 | |||||||||
Share-based compensation expense | $ 65,000 | $ 30,000 | $ 134,400 | $ 101,500 | |||||||||
Unrecognized Share based compensation | $ 3,000 | $ 15,000 | |||||||||||
Advisors [Member] | 2016 Equity Incentive Plan [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Stock options granted during period value | $ 320,000 | ||||||||||||
Stock options exercise price per share | $ 5.25 | ||||||||||||
Stock based compensation description | three-year term, for potential services to be performed over a three-year | ||||||||||||
Stock options granted during period value | $ 310,000 | ||||||||||||
Stock options exercise period | 3 years | ||||||||||||
Employees [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Stock based compensation description | the share reserve will automatically increase on January 1 of each calendar year, for the period beginning on January 1, 2022 and ending on (and including) January 1, 2030 (each, an “Evergreen Date”) in an amount equal to five percent (5%) of the total number of shares of the Company’s common stock outstanding on December 31st immediately preceding the applicable Evergreen Date (the “Evergreen Increase”). | ||||||||||||
IPO [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares Issued, Price Per Share | $ 7 | ||||||||||||
Stock issued during period shares for services | 87,500 | ||||||||||||
Stock issued during period shares | 324,150 | ||||||||||||
Loss on conversion of convertible notes | $ 280,000 | ||||||||||||
IPO [Member] | Common Stock [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued | 1,910,000 | ||||||||||||
Proceeds from sale of common stock | $ 11,820,000 | ||||||||||||
IPO [Member] | Convertible Notes Payable [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Loss on conversion of convertible notes | $ 18,000 | $ 262,000 |
SCHEDULE OF COMPUTATION OF BASI
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (1,656,761) | $ (1,277,324) | $ (6,091,687) | $ (4,993,350) |
Weighted-average common shares outstanding for basic and diluted net loss per share | 9,967,821 | 7,039,928 | 7,259,249 | 6,923,506 |
Basic and diluted net loss per share | $ (0.17) | $ (0.18) | $ (0.84) | $ (0.72) |
SCHEDULE OF POTENTIALLY DILUTIV
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES (Details) - shares | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total Potentially dilutive securities | 4,447,844 | 4,480,219 | 5,065,060 | 4,388,704 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total Potentially dilutive securities | 4,360,344 | 4,184,108 | 4,740,910 | 4,092,593 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total Potentially dilutive securities | 87,500 | |||
Convertible Debt Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total Potentially dilutive securities | 296,111 | 324,150 | 296,111 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Income Tax Disclosure [Abstract] | ||||
Net-operating loss carryforward | $ 4,269,910 | $ 3,923,012 | $ 2,961,194 | $ 2,811,156 |
Stock-based compensation | 586,042 | 536,265 | 394,742 | 348,013 |
Total Deferred Tax Assets | 4,855,952 | 4,459,277 | 3,355,936 | 3,159,169 |
Valuation allowance | (4,855,952) | (4,459,277) | (3,355,936) | (3,159,169) |
Deferred Tax Asset, Net |
SCHEDULE OF EXPECTED TAX EXPENS
SCHEDULE OF EXPECTED TAX EXPENSE (BENEFIT) BASED ON US FEDERAL STATUTORY RATE (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Statutory Federal Income Tax Rate | 21.00% | 21.00% | 21.00% | 21.00% |
State and Local Taxes, Net of Federal Tax Benefit | (13.56%) | (13.56%) | 13.56% | 13.56% |
Stock Based Compensation Expense (ISO) | 10.61% | 19.15% | 13.20% | 14.50% |
Change in Valuation Allowance | (18.05%) | (26.59%) | (21.36%) | (20.06%) |
Income Taxes Provision (Benefit) | 0.00% | 0.00% | 0.00% | 0.00% |
Statutory Federal Income Tax Rate | (21.00%) | (21.00%) | (21.00%) | (21.00%) |
State and Local Taxes, Net of Federal Tax Benefit | 13.56% | 13.56% | (13.56%) | (13.56%) |
Change in Valuation Allowance | 18.05% | 26.59% | 21.36% | 20.06% |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Operating loss carry forwards, net | $ 12,350 | $ 11,350 | $ 2,860 | ||
Operating loss carry forwards expiration date | NOLs for the periods ending June 30, 2018 and prior in the amount of approximately $2.86 million begin to expire in 2037 | NOLs for the periods ending June 30, 2018 and prior ($2.86 million) begin to expire in 2037. | |||
Valuation allowance | $ 400 | $ 200 | $ 1,300 | $ 1,000 | |
Net operating loss carryforwards no expiration | $ 8,490 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Lease Expiration Date | Dec. 31, 2022 | Dec. 31, 2021 | ||
Security deposit | $ 75,000 | $ 75,000 | ||
Rent expense | $ 86,000 | $ 72,000 | $ 296,000 | $ 247,000 |
Maximum distribution percentage of net proceeds from divestiture | 10.00% | 10.00% | ||
Lease term | 2 years | |||
Lease commencing date | Jan. 1, 2020 | |||
Accrued bonuses | $ 426,000 | |||
Three Officers [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Bonus expenses | 1,030,000 | |||
October Two Thousand Twenty One To September Two Thousand Twenty Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Lease payments | $ 309,000 | |||
Lease payments due thereafter | $ 75,000 | |||
July And December Two Thousand Twenty One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Lease payments | $ 180,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Jul. 02, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | Aug. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 |
Subsequent Event [Line Items] | |||||||||
Purchase of assets consideration value | $ 750,000 | ||||||||
Shares Issued, Price Per Share | $ 7 | ||||||||
Shares issued | 1,910,000 | ||||||||
Proceeds from issuance of common stock | $ 10,820 | $ 346,010 | $ 7,000 | $ 1,820,000 | |||||
Common stock purchase price | 77,264 | ||||||||
Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares issued | 2,423 | 76,891 | 1,556 | ||||||
Conversion of stock, shares issued | 324,150 | ||||||||
IPO [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of warrants to purchase per share | $ 7 | $ 7 | |||||||
Shares Issued, Price Per Share | $ 7 | ||||||||
Number of warrants to purchase | 87,500 | 87,500 | |||||||
Warrants expires date | Jun. 30, 2026 | ||||||||
IPO [Member] | Pre Offering Costs [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Professional fees and listing expenses | $ 470,000 | ||||||||
IPO [Member] | Accounts Payable [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Professional fees and listing expenses | $ 309,000 | ||||||||
IPO [Member] | Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares issued | 1,910,000 | ||||||||
Proceeds from issuance of common stock | $ 11,820,000 | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Purchase of assets consideration value | $ 600,000 | $ 750,000 | |||||||
Stock purchase percentage | 50.00% | ||||||||
Stock Repurchased During Period, Value | $ 300,000 | ||||||||
Stock Repurchased During Period, Shares | 33,877 | ||||||||
Shares Issued, Price Per Share | $ 7 | ||||||||
Shares issued | 1,912,500 | ||||||||
Common stock purchase price | 77,264 | ||||||||
Subsequent Event [Member] | IPO [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Sale of stock, price per share | $ 7 | ||||||||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from sale of stock | $ 15,000,000 | ||||||||
Sale of stock, shares | 1,500,000 | ||||||||
Warrants to purchase shares | 750,000 | ||||||||
Number of warrants to purchase per share | $ 14.68 | ||||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||||
Shares Issued, Price Per Share | $ 10 | ||||||||
Proceeds from warrants exercise | $ 13,600,000 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Product Information [Line Items] | ||||
Total Revenue | $ 1,022,533 | $ 259,927 | $ 3,421,495 | $ 1,945,315 |
Software Sercices [Member] | ||||
Product Information [Line Items] | ||||
Total Revenue | 804,718 | 187,652 | 3,082,528 | 1,777,447 |
SoftwareServicesMember | ||||
Product Information [Line Items] | ||||
Total Revenue | 1,777,447 | |||
Software License and Software as a Service [Member] | ||||
Product Information [Line Items] | ||||
Total Revenue | 338,967 | |||
Software License [Member] | ||||
Product Information [Line Items] | ||||
Total Revenue | $ 217,815 | $ 72,275 | $ 338,967 | $ 167,868 |
SCHEDULE OF EQUIPMENT, NET (Det
SCHEDULE OF EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Equipment | $ 96,963 | $ 105,239 | |
Property, Plant and Equipment, Useful Life | 3 years | 3 years | |
Less: accumulated depreciation | $ (54,791) | $ (64,015) | |
Balance | $ 42,172 | $ 41,224 | $ 53,513 |
EQUIPMENT, NET (Details Narrati
EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 27,054 | $ 20,222 |
GOODWILL (Details Narrative)
GOODWILL (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill [Line Items] | ||||
Goodwill impairment | $ 139,754 | |||
General and Administrative Expense [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | 140,000 | |||
Early Adopter.Com [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | $ 0 |
SCHEDULE OF CONDENSED BALANCE S
SCHEDULE OF CONDENSED BALANCE SHEET REFLECTING PROFORMA EFFECT (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Cash and cash equivalents | $ 12,567,632 | $ 1,771,929 | $ 1,034,846 | ||
Other current assets | 1,406,939 | ||||
Property, Plant and Equipment, Net | 53,513 | 42,172 | 41,224 | ||
Total assets | 14,609,954 | 3,221,040 | 1,997,235 | ||
Total current liabilities | 1,152,105 | 2,339,037 | 570,504 | ||
Convertible promissory notes, net | 1,429,953 | ||||
Other long term liability | 623,828 | ||||
Total liabilities | 1,775,933 | 4,392,818 | 2,302,924 | ||
Total stockholders' equity (deficit) | 12,834,021 | (1,171,778) | $ (728,026) | (305,689) | $ 1,473,718 |
Total liabilities and stockholders' equity (deficit) | $ 14,609,954 | 3,221,040 | $ 1,997,235 | ||
Pro Forma [Member] | |||||
Cash and cash equivalents | 13,728,429 | ||||
Other current assets | 833,296 | ||||
Property, Plant and Equipment, Net | 42,172 | ||||
Total assets | 14,603,897 | ||||
Total current liabilities | 2,004,037 | ||||
Convertible promissory notes, net | |||||
Other long term liability | 623,828 | ||||
Total liabilities | 2,627,865 | ||||
Total stockholders' equity (deficit) | 11,976,032 | ||||
Total liabilities and stockholders' equity (deficit) | $ 14,603,897 |