Cover
Cover - shares | 6 Months Ended | |
Dec. 31, 2021 | Feb. 10, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 001-40556 | |
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., 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 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | VRAR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,609,083 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 24,828,043 | $ 1,771,929 |
Investments | 247,430 | |
Accounts receivable | 1,287,735 | 626,244 |
Deferred costs | 21,030 | 29,512 |
Pre-offering costs | 470,136 | |
Acquisition escrow | 4,000,000 | |
Prepaid expenses and other current assets | 479,512 | 281,047 |
Total current assets | 30,863,750 | 3,178,868 |
Equipment, net | 76,899 | 42,172 |
Other assets | 64,000 | |
Intangible assets, net | 712,501 | |
Goodwill | 550,000 | |
Total assets | 32,267,150 | 3,221,040 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Accounts payable | 142,774 | 381,510 |
Accrued liabilities | 105,655 | 168,745 |
Accrued bonuses | 406,505 | 440,357 |
Accrued legacy acquisition expense | 460,000 | 1,250,000 |
Deferred revenue | 98,736 | 98,425 |
Total current liabilities | 1,213,670 | 2,339,037 |
Long term liabilities | ||
Paycheck Protection Program loan | 623,828 | 623,828 |
Convertible promissory notes, net | 1,429,953 | |
Total liabilities | 1,837,498 | 4,392,818 |
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; 12,480,416 and 7,579,285 issued and outstanding | 12,480 | 7,580 |
Additional paid-in capital | 55,764,735 | 20,936,050 |
Accumulated deficit | (25,347,563) | (22,115,408) |
Total stockholders’ equity (deficit) | 30,429,652 | (1,171,778) |
Total liabilities and stockholders’ equity (deficit) | $ 32,267,150 | $ 3,221,040 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 12,480,416 | 7,579,285 |
Common stock, shares outstanding | 12,480,416 | 7,579,285 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | ||||
Total Revenue | $ 1,690,002 | $ 1,259,845 | $ 2,712,535 | $ 1,519,772 |
Cost of goods sold | 212,254 | 546,192 | 357,641 | 683,316 |
Gross Profit | 1,477,748 | 713,653 | 2,354,894 | 836,456 |
Operating expenses: | ||||
Research and development expenses | 1,190,490 | 588,766 | 2,179,874 | 1,325,516 |
General and administrative expenses | 1,197,109 | 372,990 | 1,976,838 | 708,988 |
Sales and marketing expenses | 665,677 | 445,279 | 1,170,364 | 734,755 |
Total operating expenses | 3,053,276 | 1,407,035 | 5,327,076 | 2,769,259 |
Net loss from operations before other income (expense) | (1,575,528) | (693,382) | (2,972,182) | (1,932,803) |
Other income (expense) | ||||
Other income | 10,000 | |||
Interest income | 134 | 730 | 19,757 | 1,264 |
Interest expense | (48,437) | (96,874) | ||
Loss on conversion of convertible notes | (279,730) | |||
Total other income (expense), net | 134 | (47,707) | (259,973) | (85,610) |
Net Loss | $ (1,575,394) | $ (741,088) | $ (3,232,155) | $ (2,018,412) |
Basic and diluted net loss per share | $ (0.14) | $ (0.11) | $ (0.30) | $ (0.29) |
Weighted-average shares used to compute basic and diluted net loss per share | 11,637,318 | 7,053,986 | 10,802,570 | 7,046,510 |
Software Sercices [Member] | ||||
Revenue | ||||
Total Revenue | $ 1,613,195 | $ 1,191,222 | $ 2,417,913 | $ 1,378,874 |
Software License [Member] | ||||
Revenue | ||||
Total Revenue | $ 76,807 | $ 68,623 | $ 294,622 | $ 140,898 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
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 | |||
Sale of common stock to investors | $ 53 | 238,422 | 238,475 | |
Sales of common stock to investors, shares | 52,995 | |||
Common stock issued for convertible note conversion | $ 14 | 64,986 | 65,000 | |
Common stock issued for convertible note conversion, shares | 14,444 | |||
Common stock issued to vendors for compensation | $ 11 | 50,989 | 51,000 | |
Common stock issued to vendors for compensation,shares | 11,333 | |||
Stock option-based compensation expense | 1,431,815 | 1,431,815 | ||
Stock option-based board of directors expense | 83,064 | 83,064 | ||
Net loss | (2,018,412) | (2,018,412) | ||
Ending balance, value at Dec. 31, 2020 | $ 7,114 | 17,580,272 | (18,042,133) | (454,747) |
Ending Balance, shares at Dec. 31, 2020 | 7,114,543 | |||
Beginning balance, value at Sep. 30, 2020 | $ 7,045 | 16,565,974 | (17,301,045) | (728,026) |
Beginning Balance, shares at Sep. 30, 2020 | 7,044,861 | |||
Sale of common stock to investors | $ 51 | 227,604 | 227,655 | |
Sales of common stock to investors, shares | 50,572 | |||
Common stock issued for convertible note conversion | $ 14 | 64,986 | 65,000 | |
Common stock issued for convertible note conversion, shares | 14,444 | |||
Common stock issued to vendors for compensation | $ 4 | 20,996 | 21,000 | |
Common stock issued to vendors for compensation,shares | 4,666 | |||
Stock option-based compensation expense | 659,180 | 659,180 | ||
Stock option-based board of directors expense | 41,532 | 41,532 | ||
Net loss | (741,088) | (741,088) | ||
Ending balance, value at Dec. 31, 2020 | $ 7,114 | 17,580,272 | (18,042,133) | (454,747) |
Ending Balance, shares at Dec. 31, 2020 | 7,114,543 | |||
Beginning balance, value at Jun. 30, 2021 | $ 7,580 | 20,936,050 | (22,115,408) | (1,171,778) |
Beginning Balance, shares at Jun. 30, 2021 | 7,579,285 | |||
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 in Securities Purchase Agreement, net | $ 1,500 | 13,576,900 | 13,578,400 | |
Common stock issued in Securities Purchase Agreement, net, shares | 1,500,000 | |||
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 acquisitions | $ 388 | 5,049,612 | 5,050,000 | |
Common stock issued for acquisitions, shares | 388,342 | |||
Common stock issued for legacy acquisition obligation | $ 395 | 789,605 | 790,000 | |
Common stock issued for legacy acquisition obligation, shares | 395,000 | |||
Common stock issued to vendors for compensation | $ 13 | 147,882 | 147,895 | |
Common stock issued to vendors for compensation,shares | 13,373 | |||
Common stock issued for exercise of options | $ 356 | 613,263 | $ 613,619 | |
Common stock issued for exercise of options, shares | 356,925 | 751,925 | ||
Stock based compensation expense | $ 11 | 1,050,252 | $ 1,050,263 | |
Stock based compensation expense, shares | 10,841 | |||
Stock option-based board of directors expense | 175,868 | 175,868 | ||
Net loss | (3,232,155) | (3,232,155) | ||
Ending balance, value at Dec. 31, 2021 | $ 12,480 | 55,764,735 | (25,347,563) | 30,429,652 |
Ending Balance, shares at Dec. 31, 2021 | 12,480,416 | |||
Beginning balance, value at Sep. 30, 2021 | $ 10,292 | 36,595,898 | (23,772,169) | 12,834,021 |
Beginning Balance, shares at Sep. 30, 2021 | 10,291,638 | |||
Common stock issued in Securities Purchase Agreement, net | $ 1,500 | 13,576,900 | 13,578,400 | |
Common stock issued in Securities Purchase Agreement, net, shares | 1,500,000 | |||
Common stock issued for acquisitions | $ 311 | 4,299,689 | 4,300,000 | |
Common stock issued for acquisitions, shares | 311,078 | |||
Common stock issued for legacy acquisition obligation | $ 20 | 39,980 | 40,000 | |
Common stock issued for legacy acquisition obligation, shares | 20,000 | |||
Common stock issued to vendors for compensation | $ 7 | 82,493 | 82,500 | |
Common stock issued to vendors for compensation,shares | 7,328 | |||
Common stock issued for exercise of options | $ 339 | 567,580 | 567,919 | |
Common stock issued for exercise of options, shares | 339,531 | |||
Stock based compensation expense | $ 11 | 513,728 | 513,739 | |
Stock based compensation expense, shares | 10,841 | |||
Stock option-based board of directors expense | 88,467 | 88,467 | ||
Net loss | (1,575,394) | (1,575,394) | ||
Ending balance, value at Dec. 31, 2021 | $ 12,480 | $ 55,764,735 | $ (25,347,563) | $ 30,429,652 |
Ending Balance, shares at Dec. 31, 2021 | 12,480,416 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (3,232,155) | $ (2,018,412) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization and depreciation | 102,851 | 12,198 |
Amortization of paid-in kind common stock interest on convertible notes | 96,874 | |
Common stock and stock option based compensation for employees and board of directors | 1,289,381 | 1,534,416 |
Issuance of common stock to vendors as compensation | 147,895 | 51,000 |
Loss on conversion of convertible notes | 279,730 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (661,491) | (188,907) |
Pre-offering costs | 470,136 | |
Prepaid expenses and other current assets | (359,921) | (16,452) |
Deferred costs | 3,181 | (115,537) |
Other assets | (64,000) | |
Accounts payable | (238,736) | (45,275) |
Accrued liabilities | (63,090) | (31,733) |
Accrued bonuses | (33,852) | |
Deferred revenue | 311 | (54,416) |
Net cash used in operating activities | (2,359,760) | (776,244) |
Cash flow from investing activities: | ||
Purchases of equipment | (50,080) | (15,036) |
Asset acquisition | (300,000) | |
Purchase of investments | (247,430) | |
Net cash used in investing activities | (597,510) | (15,036) |
Cash flows from financing activities: | ||
Proceeds from initial public offering, net | 11,821,364 | |
Proceeds from securities purchase agreement, net | 13,578,400 | |
Proceeds from issuance of common equity to investors | 225,705 | |
Proceeds from exercise of stock options | 613,620 | |
Net cash provided by financing activities | 26,013,384 | 225,705 |
Net change in cash and cash equivalents | 23,056,114 | (565,575) |
Cash and cash equivalents, beginning of year | 1,771,929 | 1,034,846 |
Cash and cash equivalents, end of period | 24,828,043 | 469,271 |
Non-cash Investing and Financing activities: | ||
Common stock issued for acquisitions | 1,050,000 | |
Common stock issued and escrowed for acquisition | 4,000,000 | |
Conversion of convertible promissory notes into common stock | 1,606,176 | 65,000 |
Issuance of warrants in connection with initial public offering | 522,360 | |
Issuance of warrants in connection with securities purchase agreement | 8,797,546 | |
Issuance of common stock for satisfaction of legacy acquisition liability | 790,000 | |
Common stock subscription receivable | $ 12,770 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended |
Dec. 31, 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 eleven 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, MotionZone, LLC (which, along with its subsidiary, The Glimpse Group Australia Pty Ltd, are dba AUGGD), XR Terra, LLC (dba XR Terra), and a 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. In December 2021, the Company entered into a definitive agreement to purchase Sector 5 Digital, LLC (“S5D”), an enterprise focused, immersive technology company. The purchase closed in February 2022. See Notes 8 and 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. In addition, pursuant to a Securities Purchase Agreement (“SPA”) the Company sold additional common stock to certain institutional investors in November 2021. See Note 8. |
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES | 6 Months Ended |
Dec. 31, 2021 | |
Liquidity And Capital Resources | |
LIQUIDITY AND CAPITAL RESOURCES | NOTE 2. LIQUIDITY AND CAPITAL RESOURCES The Company incurred a loss of $ 3.23 2.02 On July 1, 2021, the Company completed an IPO in which, as a result of the sale of its common shares at $ 7.00 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 $ 19 million following the purchase of S5D (see Note 11), will be sufficient to meet its anticipated cash requirements for at least twelve months from the date that these financial statements are issued. However, should the Company’s current cash and cash equivalents not be sufficient to support the development of its business to the point at which it has positive cash flows from operations, the Company plans to meet its future needs for additional capital through equity and/or debt financings. Equity financings may include sales of common stock. Such financing may not be available on terms favorable to the Company or at all. If the Company is unable to obtain adequate financing or financing on terms satisfactory to it when required, the Company’s ability to continue to support its business growth, scale its infrastructure, develop product enhancements and to respond to business challenges could be significantly impaired. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 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 December 31, 2021, the results of operations for the three and six months ended December 31, 2021 and 2020, and cash flows for the six months ended December 31, 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 and six months ended December 31, 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, warrants, 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 December 31, 2021 and June 30, 2021, no Customer Concentration and Credit Risk Two customers accounted for approximately 75 45 30 67 49 18 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 Two customers accounted for approximately 63 42 21 53% 35% 18% Two customers accounted for approximately 83 44 39 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. Intangible assets (other than Goodwill) 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. The Company reviews intangibles for impairment when current events indicate that the fair value may be less than the carrying value. 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 asset acquisitions, see Note 4. Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, such as investments, 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 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 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 consultants and 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 and six months ended December 31, 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 the customer accepts delivery. If there are significant 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 Timing of Revenue The timing of revenue recognition for the three and six months ended December 31, 2021 and 2020 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended December 31, December 31, 2021 2020 2021 2020 Products transferred at a point in time $ 1,634,998 $ 1,099,423 $ 2,590,749 $ 1,292,598 Products and services transferred over time 55,004 160,422 121,786 227,174 Total Revenue $ 1,690,002 $ 1,259,845 $ 2,712,535 $ 1,519,772 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 December 31, 2021, the Company had approximately $ 1.55 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 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 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. Reclassifications Certain accounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements. 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 |
ASSET ACQUISITIONS
ASSET ACQUISITIONS | 6 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ASSET ACQUISITIONS | NOTE 4. ASSET ACQUISITIONS AUGGD 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. Initial consideration for the purchase was $ 0.75 77,264 SCHEDULE OF ASSET ACQUISITION Intangible Assets $ 500,000 Goodwill 250,000 Total $ 750,000 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. XR Terra In October 2021, the Company, through its wholly owned subsidiary company, XR Terra, LLC, completed an acquisition of certain assets, as defined in the agreement, from XR Terra, Inc., a developer of teaching platforms utilized in coding software used in VR and AR programming. Initial consideration for the purchase was $ 0.60 million payable 50% in Company common stock and 50% in cash. 0.30 33,877 shares of common stock to satisfy the purchase price. The acquisition agreement provides for additional contingent consideration in the form of Company common stock if certain future revenue targets are achieved through September 2024, which is not expected at this time. No liabilities were assumed as part of the acquisition and the primary assets acquired included employees and technology. The Company recorded the purchase price allocation as follows: SCHEDULE OF ASSET ACQUISITION Intangible Assets $ 300,000 Goodwill 300,000 Total $ 600,000 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 XR Terra 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 5. INTANGIBLE ASSETS The Company recorded intangible assets in connection with its asset purchases of AUGGD and XR Terra (see Note 4). The intangible assets, their respective amortization period, and accumulated amortization at December 31, 2021 are as follows: SCHEDULE OF INTANGIBLE ASSET As of December 31, 2021 Value ($) Amortization Period (Years) AUGGD XR Terra Total Intangible Assets Customer Relationships $ 250,000 $ - $ 250,000 3 Technology 250,000 300,000 550,000 3 Less: Accumulated Amortization (62,500 ) (24,999 ) (87,499 ) Intangible Assets, net $ 437,500 $ 275,001 $ 712,501 Intangible asset amortization expense for the three and six months ended December 31, 2021 was $ 20,834 87,499 Estimated intangible asset amortization expense for the next four years is as follow: SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE Remaining FYE June 30, 2022 $ 133,333 Fiscal Year Ended June 30, 2023 266,667 Fiscal Year Ended June 30, 2024 266,667 Fiscal Year Ended June 30, 2025 45,834 |
CONTINGENT ACQUISITION LIABILIT
CONTINGENT ACQUISITION LIABILITY | 6 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
CONTINGENT ACQUISITION LIABILITY | NOTE 6. 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 20,000 2.00 |
DEBT
DEBT | 6 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 7. DEBT Convertible Promissory Notes 1 In December 2019, the Company raised $ 1.33 three-year THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 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 $ 4.50 295,000 48,500 97,000 In December 2020 and 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 (net of original discount of approximately $ 8,000 ) of outstanding principal at June 30, 2021, amended their Notes 1 to allow for auto conversion upon the Company’s potential IPO event at a conversion price of $ 4.25 /share. As per the amendment, the residual Notes 1 converted upon the IPO and no further obligations existed. See Note 8. 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 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 /share, or 295,000 shares of common stock upon full conversion. Notes 2 had a maturity date of March 5, 2023 . All outstanding amounts at the time of the Company’s IPO automatically converted at $ 5.00 1.313 million (net of original issue discount of approximately $ 162,000 ) at June 30, 2021. The Notes 2 converted upon the IPO and no further obligations existed. See Note 8. The Company recorded a loss on conversion of the Notes 2 of approximately $ 262,000 |
EQUITY
EQUITY | 6 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
EQUITY | NOTE 8. 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 was 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 7, in conjunction with the IPO, the outstanding convertible promissory Notes 1 and 2 were satisfied in full through the issuance of 324,150 shares of common stock. A loss of approximately $ 280,000 was recorded on this conversion at the time of the IPO. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 Securities Purchase Agreement (“SPA”) In November 2021, the Company sold $ 15.0 Under the terms of the SPA, the Company sold 1.50 0.75 The purchase price for one share of common stock and half a corresponding warrant was $10.00 14.63 0.56 five years 0.19 five years 8.80 5 146 1.22 0 Common Stock Issued Common stock sold to Investors During the six months ended December 31, 2021, the Company sold approximately 1.91 7.00 11.82 1.50 10.00 13.58 During the six months ended December 31, 2020, the Company sold approximately 53,000 4.50 239,000 Common stock issued to Investors During the six months ended December 31, 2021, in connection with the conversion of convertible promissory notes and in conjunction with the IPO, the Company issued 324,150 14,444 Common stock issued for Acquisitions During the six months ended December 31, 2021, the Company issued approximately 111,000 1.05 277,000 4.0 Common stock issued for Legacy Acquisition Obligation During the six months ended December 31, 2021, the Company issued 395,000 790,000 Common stock issued to Vendors During the six months ended December 31, 2021 and 2020, the Company issued approximately 13,400 11,300 148,000 51,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 Common stock issued for Exercise of Stock Options During the six months ended December 31, 2021, the Company issued approximately 357,000 614,000 Common stock-based Compensation expense During the six months ended December 31, 2021, the Company issued approximately 11,000 96,000 Employee Stock-Based Compensation The Company’s 2016 Equity Incentive Plan (the “Plan”), as amended, has 10 5.26 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 For the Three Months Ended December 31, For the Six Months Ended December 31, 2021 2020 2021 2020 Weighted average expected terms (in years) 5.6 5.0 5.5 5.1 Weighted average expected volatility 229.3 % 117.25 % 171.4 % 117.25 % Weighted average risk-free interest rate 1.2 % 0.4 % 1.0 % 0.3 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % The grant date fair value, for options granted during the six months ended December 31, 2021 and 2020 was approximately $ 1.29 0.50 The following is a summary of the Company’s stock option activity for the six months ended December 31, 2021: 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 158,907 8.59 9.8 714,854 Options Exercised (751,925 ) 2.62 7.8 (7,775,919 ) Options Forfeited / Cancelled (173,190 ) 4.42 8.9 (1,479,671 ) Outstanding at December 31, 2021 3,974,702 $ 3.71 8.6 $ 24,522,730 Exercisable at December 31, 2021 3,784,856 $ 3.52 8.5 $ 23,983,666 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 The Company’s stock option-based expense for the three and six months ended December 31, 2021 and 2020 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE For the Three Months Ended For the Six Months Ended December 31 December 31 2021 2020 2021 2020 Stock option-based expense : Research and development expenses $ 257,911 $ 199,169 $ 605,508 $ 603,081 General and administrative expenses 57,929 197,851 124,572 296,014 Sales and marketing expenses 112,847 146,108 240,839 245,408 Cost of goods sold 21,394 258,725 44,158 304,412 Board option expense 89,686 42,750 178,305 85,501 Total $ 539,767 $ 844,603 $ 1,193,382 $ 1,534,416 At December 31, 2021, total unrecognized compensation expense to employees, board members and vendors related to stock options was approximately $ 1.29 2.22 The intrinsic value of stock options at December 31, 2021 was computed using a fair market value of the common stock of $ 9.86 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 9. 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 For the Three Months Ended For the Six Months Ended December 31 December 31 2021 2020 2021 2020 Numerator: Net loss $ (1,575,394 ) $ (741,088 ) $ (3,232,155 ) $ (2,018,412 ) Denominator: Weighted-average common shares outstanding for basic and diluted net loss per share 11,637,318 7,053,986 10,802,570 7,046,510 Basic and diluted net loss per share $ (0.14 ) $ (0.11 ) $ (0.30 ) $ (0.29 ) 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 December 31, 2021 At December 31, 2020 Stock Options 3,974,702 4,168,162 Warrants 837,500 - Convertible Notes - 281,667 Total 4,812,202 4,449,829 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES Operating Leases New York The Company has an office space lease expiring, as amended, on December 31, 2022 75,000 There is approximately $ 300,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 Turkey The Company entered into office leases for two locations in Turkey effective December 1, 2021 and expiring on November 30, 2022. To secure the leases, the Company paid approximately $ 2,400 Monthly rent expense for the two locations will be approximately $ 2,400 Companywide rent expense for the three and six months ended December 31, 2021 was approximately $ 90,000 176,000 74,000 146,000 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11. SUBSEQUENT EVENTS Purchase of Sector 5 Digital, LLC (“S5D”) In December 2021, the Company entered into a Membership Interest Sale Agreement (the “S5D Agreement”) to purchase all of the membership interests of Sector 5 Digital, LLC (“S5D”), an enterprise focused, immersive technology company that combines innovative storytelling with emerging technologies for industry leading organizations. The transaction’s total potential purchase price is $ 27.0 8.0 4.0 4.0 0.28 19.0 2 In February 2022, the S5D transaction closed and S5D became a wholly-owned subsidiary of the Company. $ 4 4 2 S5D had revenue for calendar year 2021 of approximately $ 4 The Company is currently determining its potential contingent liability for the purchase, as well as allocation of the purchase price amongst the assets purchased, intangible assets, goodwill and liabilities assumed. Contingent Acquisition Liability In January 2022, the Company settled its remaining obligations relating to the acquisition of KreatAR, LLC (see Note 6) through the issuance of 42,978 430,000 15,000 2.00 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 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 December 31, 2021, the results of operations for the three and six months ended December 31, 2021 and 2020, and cash flows for the six months ended December 31, 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 and six months ended December 31, 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 | 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, warrants, cost of goods sold and allocation of the purchase price of assets relating to business combinations. |
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. |
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 December 31, 2021 and June 30, 2021, no |
Customer Concentration and Credit Risk | Customer Concentration and Credit Risk Two customers accounted for approximately 75 45 30 67 49 18 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 Two customers accounted for approximately 63 42 21 53% 35% 18% Two customers accounted for approximately 83 44 39 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, 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 | 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. |
Intangible assets (other than Goodwill) | Intangible assets (other than Goodwill) 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. The Company reviews intangibles for impairment when current events indicate that the fair value may be less than the carrying value. |
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 asset acquisitions, see Note 4. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, such as investments, 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 |
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 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 consultants and 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 and six months ended December 31, 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 the customer accepts delivery. If there are significant 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 Timing of Revenue The timing of revenue recognition for the three and six months ended December 31, 2021 and 2020 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended December 31, December 31, 2021 2020 2021 2020 Products transferred at a point in time $ 1,634,998 $ 1,099,423 $ 2,590,749 $ 1,292,598 Products and services transferred over time 55,004 160,422 121,786 227,174 Total Revenue $ 1,690,002 $ 1,259,845 $ 2,712,535 $ 1,519,772 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 December 31, 2021, the Company had approximately $ 1.55 |
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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) DECEMBER 31, 2021 AND 2020 |
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. |
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 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 |
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. |
Reclassifications | Reclassifications Certain accounts in the prior period financial statements have been reclassified for comparative purposes to conform with the presentation in the current period financial statements. |
Recent Accounting 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF TIMING REVENUE RECOGNITION | The timing of revenue recognition for the three and six months ended December 31, 2021 and 2020 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION 2021 2020 2021 2020 For the Three Months Ended For the Six Months Ended December 31, December 31, 2021 2020 2021 2020 Products transferred at a point in time $ 1,634,998 $ 1,099,423 $ 2,590,749 $ 1,292,598 Products and services transferred over time 55,004 160,422 121,786 227,174 Total Revenue $ 1,690,002 $ 1,259,845 $ 2,712,535 $ 1,519,772 |
ASSET ACQUISITIONS (Tables)
ASSET ACQUISITIONS (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
AUGGD [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF ASSET ACQUISITION | SCHEDULE OF ASSET ACQUISITION Intangible Assets $ 500,000 Goodwill 250,000 Total $ 750,000 |
XR Terra [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF ASSET ACQUISITION | SCHEDULE OF ASSET ACQUISITION Intangible Assets $ 300,000 Goodwill 300,000 Total $ 600,000 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSET | SCHEDULE OF INTANGIBLE ASSET As of December 31, 2021 Value ($) Amortization Period (Years) AUGGD XR Terra Total Intangible Assets Customer Relationships $ 250,000 $ - $ 250,000 3 Technology 250,000 300,000 550,000 3 Less: Accumulated Amortization (62,500 ) (24,999 ) (87,499 ) Intangible Assets, net $ 437,500 $ 275,001 $ 712,501 |
SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE | Estimated intangible asset amortization expense for the next four years is as follow: SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE Remaining FYE June 30, 2022 $ 133,333 Fiscal Year Ended June 30, 2023 266,667 Fiscal Year Ended June 30, 2024 266,667 Fiscal Year Ended June 30, 2025 45,834 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Dec. 31, 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 For the Three Months Ended December 31, For the Six Months Ended December 31, 2021 2020 2021 2020 Weighted average expected terms (in years) 5.6 5.0 5.5 5.1 Weighted average expected volatility 229.3 % 117.25 % 171.4 % 117.25 % Weighted average risk-free interest rate 1.2 % 0.4 % 1.0 % 0.3 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % |
SUMMARY OF STOCK OPTION ACTIVITY | The following is a summary of the Company’s stock option activity for the six months ended December 31, 2021: 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 158,907 8.59 9.8 714,854 Options Exercised (751,925 ) 2.62 7.8 (7,775,919 ) Options Forfeited / Cancelled (173,190 ) 4.42 8.9 (1,479,671 ) Outstanding at December 31, 2021 3,974,702 $ 3.71 8.6 $ 24,522,730 Exercisable at December 31, 2021 3,784,856 $ 3.52 8.5 $ 23,983,666 |
SCHEDULE OF STOCK OPTION-BASED EXPENSE | The Company’s stock option-based expense for the three and six months ended December 31, 2021 and 2020 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE For the Three Months Ended For the Six Months Ended December 31 December 31 2021 2020 2021 2020 Stock option-based expense : Research and development expenses $ 257,911 $ 199,169 $ 605,508 $ 603,081 General and administrative expenses 57,929 197,851 124,572 296,014 Sales and marketing expenses 112,847 146,108 240,839 245,408 Cost of goods sold 21,394 258,725 44,158 304,412 Board option expense 89,686 42,750 178,305 85,501 Total $ 539,767 $ 844,603 $ 1,193,382 $ 1,534,416 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 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 For the Three Months Ended For the Six Months Ended December 31 December 31 2021 2020 2021 2020 Numerator: Net loss $ (1,575,394 ) $ (741,088 ) $ (3,232,155 ) $ (2,018,412 ) Denominator: Weighted-average common shares outstanding for basic and diluted net loss per share 11,637,318 7,053,986 10,802,570 7,046,510 Basic and diluted net loss per share $ (0.14 ) $ (0.11 ) $ (0.30 ) $ (0.29 ) |
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 December 31, 2021 At December 31, 2020 Stock Options 3,974,702 4,168,162 Warrants 837,500 - Convertible Notes - 281,667 Total 4,812,202 4,449,829 |
LIQUIDITY AND CAPITAL RESOURC_2
LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($) | Nov. 01, 2021 | Jul. 02, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 |
Liquidity And Capital Resources | |||||||
Net loss | $ 1,575,394 | $ 741,088 | $ 3,232,155 | $ 2,018,412 | |||
Share issued price per share | $ 7 | ||||||
Gross proceeds from issuance initial public offering | $ 11,800,000 | ||||||
Net proceeds from issuance initial public offering | $ 13,600,000 | 11,821,364 | |||||
Cash and cash equivalents | $ 19,000,000 | $ 24,828,043 | $ 24,828,043 | $ 1,771,929 |
SCHEDULE OF TIMING REVENUE RECO
SCHEDULE OF TIMING REVENUE RECOGNITION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 1,690,002 | $ 1,259,845 | $ 2,712,535 | $ 1,519,772 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,634,998 | 1,099,423 | 2,590,749 | 1,292,598 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 55,004 | $ 160,422 | $ 121,786 | $ 227,174 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Product Information [Line Items] | |||||
Allowance for doubtful accounts receivable | $ 0 | $ 0 | $ 0 | ||
Unfulfilled performance obligations | $ 1,550,000 | ||||
Tax benefit settlement description | greater than 50% | ||||
Income tax penalties and interest | $ 0 | $ 0 | $ 0 | $ 0 | |
Two Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 75.00% | 63.00% | 67.00% | 53.00% | |
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 83.00% | 71.00% | |||
Customer One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 45.00% | 42.00% | 49.00% | 35.00% | |
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 44.00% | 57.00% | |||
Customer Two [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 30.00% | 21.00% | 18.00% | 18.00% | |
Customer Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk percentage | 39.00% | 14.00% |
SCHEDULE OF ASSET ACQUISITION (
SCHEDULE OF ASSET ACQUISITION (Details) - USD ($) | Dec. 31, 2021 | Oct. 31, 2021 | Aug. 31, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 550,000 | |||
AUGGD [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible Assets | $ 500,000 | |||
Goodwill | 250,000 | |||
Total | $ 750,000 | |||
XR Terra, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible Assets | $ 300,000 | |||
Goodwill | 300,000 | |||
Total | $ 600,000 |
ASSET ACQUISITIONS (Details Nar
ASSET ACQUISITIONS (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | |
Oct. 31, 2021 | Aug. 31, 2021 | |
Motion Zone LLC [Member] | ||
Business Acquisition [Line Items] | ||
Purchase of assets consideration value | $ 750 | |
Common stock purchase price, shares | 77,264 | |
XR Terra, LLC [Member] | ||
Business Acquisition [Line Items] | ||
Purchase of assets consideration value | $ 600 | |
Common stock purchase price, shares | 33,877 | |
Asset acquisition, description | 50% in Company common stock and 50% in cash. | |
Paid in cash, acquisition | $ 300 |
SCHEDULE OF INTANGIBLE ASSET (D
SCHEDULE OF INTANGIBLE ASSET (Details) - USD ($) | 6 Months Ended | ||
Dec. 31, 2021 | Oct. 31, 2021 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Less: Accumulated Amortization | $ (87,499) | ||
Intangible Assets, net | 712,501 | ||
AUGGD [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Less: Accumulated Amortization | (62,500) | ||
Intangible Assets, net | 437,500 | ||
XR Terra, LLC [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, gross | $ 300,000 | ||
Less: Accumulated Amortization | (24,999) | ||
Intangible Assets, net | 275,001 | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, gross | $ 250,000 | ||
Intangible assets amortization period | 3 years | ||
Customer Relationships [Member] | AUGGD [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, gross | $ 250,000 | ||
Customer Relationships [Member] | XR Terra, LLC [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, gross | |||
Technology-Based Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, gross | $ 550,000 | ||
Intangible assets amortization period | 3 years | ||
Technology-Based Intangible Assets [Member] | AUGGD [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, gross | $ 250,000 | ||
Technology-Based Intangible Assets [Member] | XR Terra, LLC [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, gross | $ 300,000 |
SCHEDULE OF INTANGIBLE ASSET AM
SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE (Details) | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining FYE June 30, 2022 | $ 133,333 |
Fiscal Year Ended June 30, 2023 | 266,667 |
Fiscal Year Ended June 30, 2024 | 266,667 |
Fiscal Year Ended June 30, 2025 | $ 45,834 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible asset amortization expense | $ 20,834 | $ 87,499 |
CONTINGENT ACQUISITION LIABIL_2
CONTINGENT ACQUISITION LIABILITY (Details Narrative) - USD ($) | 1 Months Ended | |
Aug. 31, 2021 | Jul. 02, 2021 | |
Business Acquisition [Line Items] | ||
Shares issued price per share | $ 7 | |
Kabaq 3D Technologies LLC [Member] | ||
Business Acquisition [Line Items] | ||
Additional acquisition cost | $ 750,000 | |
Number of shares of settlement of stock options. | 375,000 | |
Shares issued price per share | $ 2 | |
KreatAR, LLC [Member] | ||
Business Acquisition [Line Items] | ||
Additional acquisition cost | $ 500,000 | |
Number of shares of settlement of stock options. | 20,000 | |
Shares issued price per share | $ 2 |
DEBT (Details Narrative)
DEBT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | |||||||||
Original issue discount on notes | $ 48,437 | $ 96,874 | |||||||
Stock issued during period value | 227,655 | 238,475 | |||||||
Loss on conversion of convertible notes | $ 279,730 | ||||||||
IPO [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt conversion converted instrument shares | 324,150 | ||||||||
Loss on conversion of convertible notes | $ 280,000 | ||||||||
Convertible Notes Payable [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Proceeds from issuance of unsecured debt | $ 1,480,000 | $ 1,330,000 | |||||||
Debt instrument term, description | two-year | three-year | |||||||
Debt instrument interest rate percentage | 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 | ||||||||
Debt conversion price | $ 5 | $ 4 | $ 4 | $ 4.50 | $ 4 | $ 4 | |||
Debt conversion converted instrument shares | 295,000 | 300,000 | 300,000 | 295,000 | 324,150 | 14,444 | |||
Stock issued during period value | $ 1,210,000 | $ 1,210,000 | |||||||
Convertible notes payable | $ 1,313,000 | ||||||||
Debt unamortized discount | $ 162,000 | ||||||||
Debt Instrument, Maturity Date | Mar. 5, 2023 | ||||||||
Convertible Notes Payable [Member] | IPO [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt conversion price | $ 4.25 | ||||||||
Convertible notes payable | $ 117,000 | ||||||||
Debt unamortized discount | 8,000 | ||||||||
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 | $ 97,000 |
SCHEDULE OF BLACK-SCHOLES OPTIO
SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL ASSUMPTIONS (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||||
Weighted average expected terms (in years) | 5 years 7 months 6 days | 5 years | 5 years 6 months | 5 years 1 month 6 days |
Weighted average expected volatility | 229.30% | 117.25% | 171.40% | 117.25% |
Weighted average risk-free interest rate | 1.20% | 0.40% | 1.00% | 0.30% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) - USD ($) | 6 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Options Outstanding, Beginning balance | 4,740,910 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 3.40 |
Weighted Average Remaining Contractual Term (Yrs), Outstanding Beginning | 8 years 6 months |
Intrinsic Value, Outstanding Beginning balance | $ 7,893,467 |
Options, Granted | 158,907 |
Weighted Average Exercise Price, Options Granted | $ 8.59 |
Weighted Average Remaining Contractual Term (Yrs), Options Granted | 9 years 9 months 18 days |
Intrinsic Value, Options Granted | $ 714,854 |
Options, Exercised | (751,925) |
Weighted Average Exercise Price, Options Exercised | $ 2.62 |
Weighted Average Remaining Contractual Term (Yrs), Options Exercised | 7 years 9 months 18 days |
Intrinsic Value, Options Exercised | $ (7,775,919) |
Options, Forfeited/Cancelled | (173,190) |
Weighted Average Exercise Price, Options Forfeited/Cancelled | $ 4.42 |
Weighted Average Remaining Contractual Term (Yrs), Options Forfeited/Cancelled | 8 years 10 months 24 days |
Intrinsic Value, Options Forfeited/Cancelled | $ (1,479,671) |
Options Outstanding, Ending balance | 3,974,702 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ 3.71 |
Weighted Average Remaining Contractual Term (Yrs), Outstanding Ending | 8 years 7 months 6 days |
Intrinsic Value, Outstanding Ending balance | $ 24,522,730 |
Options Exercisable, Ending balance | 3,784,856 |
Weighted Average Exercise Price, Exercisable, Ending balance | $ 3.52 |
Weighted Average Remaining Contractual Term (Yrs), Exercisable, Ending | 8 years 6 months |
Intrinsic Value, Exercisable Ending balance | $ 23,983,666 |
SCHEDULE OF STOCK OPTION-BASED
SCHEDULE OF STOCK OPTION-BASED EXPENSE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total | $ 539,767 | $ 844,603 | $ 1,193,382 | $ 1,534,416 |
Research and Development Expense [Member] | ||||
Total | 257,911 | 199,169 | 605,508 | 603,081 |
General and Administrative Expense [Member] | ||||
Total | 57,929 | 197,851 | 124,572 | 296,014 |
Selling and Marketing Expense [Member] | ||||
Total | 112,847 | 146,108 | 240,839 | 245,408 |
Cost of Sales [Member] | ||||
Total | 21,394 | 258,725 | 44,158 | 304,412 |
Board Option Expense [Member] | ||||
Total | $ 89,686 | $ 42,750 | $ 178,305 | $ 85,501 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) | May 02, 2022USD ($) | Jul. 02, 2021USD ($)$ / sharesshares | Feb. 02, 2021shares | Nov. 30, 2021$ / sharesshares | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)shares | Jan. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued price per share | $ / shares | $ 7 | ||||||||||||
Number of shares issued | 1,910,000 | ||||||||||||
Proceeds from issuance of Equity | $ | $ 11,820,000 | ||||||||||||
Warrant exercisable description | The warrant was 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 | ||||||||||||
Proceeds from Issuance of Common Stock | $ | 225,705 | ||||||||||||
Legacy acquisition obligation | $ | $ 790,000 | ||||||||||||
Number of shares issued, value | $ | $ 227,655 | $ 238,475 | |||||||||||
Options granted, fair value | $ / shares | $ 1,290,000 | $ 500,000 | |||||||||||
2016 Equity Incentive Plan [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Stock available for issuance | 5,260,000 | 5,260,000 | |||||||||||
Unrecognized compensation expense to employees and vendors | $ | $ 1,290,000 | $ 1,290,000 | |||||||||||
Weighted average period | 2 years 2 months 19 days | ||||||||||||
Stock options intrinsic value per share | $ / shares | $ 9.86 | ||||||||||||
2016 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Common shares reserved for issuance | 10,000,000 | 10,000,000 | |||||||||||
To Satisfy Contingent Liabilities [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 357,000 | ||||||||||||
Number of shares issued, value | $ | $ 614,000 | ||||||||||||
Stock Based Compensation [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 11,000 | ||||||||||||
Number of shares issued, value | $ | $ 96,000 | ||||||||||||
AUGGD Aand XR Terra LLC [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 1,050,000 | ||||||||||||
Sector5 Digital LLC [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 4,000,000 | ||||||||||||
Convertible Notes Payable [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Debt conversion converted shares | 295,000 | 300,000 | 300,000 | 295,000 | 324,150 | 14,444 | |||||||
Number of shares issued, value | $ | $ 1,210,000 | $ 1,210,000 | |||||||||||
Investor [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued price per share | $ / shares | $ 4.50 | $ 7 | $ 4.50 | $ 7 | $ 4.50 | ||||||||
Number of shares issued | 1,910,000 | 53,000 | |||||||||||
Proceeds from Issuance of Common Stock | $ | $ 11,820,000 | $ 239,000 | |||||||||||
Number of sale of stock | 1,500,000 | ||||||||||||
Sale of stock price per share | $ / shares | $ 10 | $ 10 | |||||||||||
Proceeds from sale of stock | $ | $ 13,580,000 | ||||||||||||
Vendors [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued for services | 13,400 | 11,300 | |||||||||||
Share-based Payment Arrangement, Expense | $ | $ 148,000 | $ 51,000 | |||||||||||
Common Stock [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 50,572 | 52,995 | |||||||||||
Number of shares issued for services | 1,500,000 | 1,500,000 | |||||||||||
Number of shares issued, value | $ | $ 51 | $ 53 | |||||||||||
Common Stock [Member] | AUGGD Aand XR Terra LLC [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 111,000 | ||||||||||||
Common Stock [Member] | Sector5 Digital LLC [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 277,000 | ||||||||||||
Common Stock [Member] | Legacy Acquisition Obligation [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 395,000 | ||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 15,000,000 | ||||||||||||
Warrants to purchase | 190,000 | ||||||||||||
Warrants to purchase of shares | 560,000 | ||||||||||||
Warrants and rights outstanding, term | 5 years | ||||||||||||
Securities Purchase Agreement [Member] | Measurement Input Rate Volatility [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Warrants measurement input | 146 | ||||||||||||
Securities Purchase Agreement [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Warrants measurement input | 1.22 | ||||||||||||
Securities Purchase Agreement [Member] | Measurement Input, Expected Dividend Rate [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Warrants measurement input | 0 | ||||||||||||
Securities Purchase Agreement [Member] | Subsequent Event [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Warrants and rights outstanding, term | 5 years | ||||||||||||
Fair value of warrants | $ | $ 8,800,000 | ||||||||||||
Securities Purchase Agreement [Member] | Common Stock [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | 1,500,000 | ||||||||||||
Warrants to purchase | 750,000 | ||||||||||||
Class of warrants, description | The purchase price for one share of common stock and half a corresponding warrant was $10.00 | ||||||||||||
Warrants price per share | $ / shares | $ 14.63 | ||||||||||||
IPO [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Shares issued price per share | $ / shares | $ 7 | $ 7 | |||||||||||
Number of shares issued for services | 87,500 | ||||||||||||
Debt conversion converted shares | 324,150 | ||||||||||||
Loss on conversion of convertible notes | $ | $ 280,000 | ||||||||||||
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 | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (1,575,394) | $ (741,088) | $ (3,232,155) | $ (2,018,412) |
Weighted-average common shares outstanding for basic and diluted net loss per share | 11,637,318 | 7,053,986 | 10,802,570 | 7,046,510 |
Basic and diluted net loss per share | $ (0.14) | $ (0.11) | $ (0.30) | $ (0.29) |
SCHEDULE OF POTENTIALLY DILUTIV
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES (Details) - shares | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 4,812,202 | 4,449,829 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 3,974,702 | 4,168,162 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 837,500 | |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 281,667 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Liability Contingency [Line Items] | ||||
Lease Expiration Date | Dec. 31, 2022 | |||
Security deposit | $ 75,000 | $ 75,000 | ||
Payments for Rent | 90,000 | $ 74,000 | $ 176,000 | $ 146,000 |
Distribution percentage | 10.00% | |||
TURKEY | ||||
Product Liability Contingency [Line Items] | ||||
Payment for security deposit | $ 2,400 | |||
Payments for Rent | 2,400 | |||
January-December 2022 [Member] | ||||
Product Liability Contingency [Line Items] | ||||
Lessee, Operating Lease, Liability, to be Paid | $ 300,000 | $ 300,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jul. 02, 2021 | |
Subsequent Event [Line Items] | ||||||||||
Purchase price of acquisition | $ 4,300,000 | $ 5,050,000 | ||||||||
Sale of common stock to investors | $ 227,655 | $ 238,475 | ||||||||
Revenue | $ 1,690,002 | $ 1,259,845 | $ 2,712,535 | $ 1,519,772 | ||||||
Share price | $ 7 | |||||||||
Sector 5 Digital, LLC [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Revenue | $ 4,000,000 | |||||||||
Sector 5 Digital, LLC [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Purchase of assets in cash | $ 4,000,000 | |||||||||
Sale of common stock to investors | 4,000,000 | |||||||||
Cash escrowed | $ 2,000,000 | |||||||||
Sector 5 Digital, LLC [Member] | Membership Interest Sale Agreement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Purchase price of acquisition | $ 27,000,000 | |||||||||
Initial payment of acquisition | 8,000,000 | |||||||||
Purchase of assets in cash | 4,000,000 | |||||||||
Sale of common stock to investors | $ 4,000,000 | |||||||||
Number of purchase of shares | 280,000 | |||||||||
Sector 5 Digital, LLC [Member] | Membership Interest Sale Agreement [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Purchase price consideration | $ 19,000,000 | |||||||||
Payment for acquisition | $ 2,000,000 | |||||||||
KreatAR, LLC [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of shares of settlement of stock options | 20,000 | |||||||||
Share price | $ 2 | |||||||||
KreatAR, LLC [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Purchase price of acquisition | $ 430,000 | |||||||||
Number of shares issued for acquisition | 42,978 | |||||||||
Number of shares of settlement of stock options | 15,000 | |||||||||
Share price | $ 2 |