Cover
Cover - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Sep. 20, 2022 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | FY | |
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, $0.001 par value per share | |
Trading Symbol | VRAR | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
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 Public Float | $ 63,068,992 | |
Entity Common Stock, Shares Outstanding | 13,593,734 | |
ICFR Auditor Attestation Flag | false | |
Auditor Firm ID | 694 | |
Auditor Name | Hoberman & Lesser CPA’s, LLP | |
Auditor Location | New York NY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 16,249,666 | $ 1,771,929 |
Investments | 239,314 | |
Accounts receivable | 1,332,922 | 626,244 |
Deferred costs/contract assets | 39,484 | 29,512 |
Prepaid expenses and other current assets | 479,483 | 281,047 |
Pre-offering costs | 470,136 | |
Total current assets | 18,340,869 | 3,178,868 |
Equipment, net | 245,970 | 42,172 |
Note receivable | 250,000 | |
Intangible assets, net | 4,063,485 | |
Goodwill | 13,464,760 | |
Other assets | 32,000 | |
Restricted cash | 2,000,000 | |
Total assets | 38,397,084 | 3,221,040 |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||
Accounts payable | 340,139 | 381,510 |
Accrued liabilities | 188,417 | 168,745 |
Accrued bonuses | 169,262 | 440,357 |
Deferred revenue/contract liabilities | 841,389 | 98,425 |
Asset purchase payable | 734,037 | |
Contingent consideration for acquisitions, current portion | 1,966,171 | 1,250,000 |
Total current liabilities | 4,239,415 | 2,339,037 |
Long term liabilities | ||
Contingent consideration for acquisition, net of current portion | 5,340,800 | |
Paycheck Protection Program loan | 623,828 | |
Convertible promissory notes, net | 1,429,953 | |
Total liabilities | 9,580,215 | 4,392,818 |
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; 12,747,624 and 7,579,285 issued and outstanding | 12,749 | 7,580 |
Additional paid-in capital | 56,885,815 | 20,936,050 |
Accumulated deficit | (28,081,695) | (22,115,408) |
Total stockholders’ equity (deficit) | 28,816,869 | (1,171,778) |
Total liabilities and stockholders’ equity (deficit) | $ 38,397,084 | $ 3,221,040 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | 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 | 12,747,624 | 7,579,285 |
Common stock, shares outstanding | 12,747,624 | 7,579,285 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | ||
Total Revenue | $ 7,267,613 | $ 3,421,495 |
Cost of goods sold | 1,241,149 | 1,461,210 |
Gross Profit | 6,026,464 | 1,960,285 |
Operating expenses: | ||
Research and development expenses | 6,158,395 | 3,183,055 |
General and administrative expenses | 4,931,877 | 2,210,811 |
Sales and marketing expenses | 3,141,033 | 1,267,088 |
Additional asset purchase consideration | 568,571 | 1,250,000 |
Change in fair value of acquisition contingent consideration | (2,430,800) | |
Total operating expenses | 12,369,076 | 7,910,954 |
Loss from operations before other income (expense) | (6,342,612) | (5,950,669) |
Other income (expense) | ||
Forgiveness of Paycheck Protection Program loan | 623,828 | 548,885 |
Interest income | 32,227 | 6,202 |
Interest expense | (180,641) | |
Loss on conversion of convertible notes | (279,730) | (515,464) |
Total other income (expense), net | 376,325 | (141,018) |
Net Loss | $ (5,966,287) | $ (6,091,687) |
Basic and diluted net loss per share | $ (0.51) | $ (0.84) |
Weighted-average shares used to compute basic and diluted net loss per share | 11,731,383 | 7,259,249 |
Software Services [Member] | ||
Revenue | ||
Total Revenue | $ 6,720,416 | $ 3,082,528 |
Software License [Member] | ||
Revenue | ||
Total Revenue | $ 547,197 | $ 338,967 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Jun. 30, 2020 | $ 7,036 | $ 15,710,996 | $ (16,023,721) | $ (305,689) |
Beginning balance, shares at Jun. 30, 2020 | 7,035,771 | |||
Sales of common stock to investors | $ 77 | 345,933 | 346,010 | |
Sales of common stock to investors, shares | 76,891 | |||
Common stock issued for convertible note conversion | $ 332 | 1,486,727 | 1,487,059 | |
Common stock issued for convertible note conversion, shares | 332,063 | |||
Common stock issued to satisfy contingent liability | $ 13 | 67,162 | 67,175 | |
Common stock issued to satisfy contingent liability, shares | 13,435 | |||
Common stock issued to employees for compensation | $ 19 | 92,746 | 92,765 | |
Common stock issued to employees for compensation, shares | 18,553 | |||
Common stock issued to convertible promissory note holders for prepaid interest | $ 30 | 147,471 | 147,501 | |
Common stock issued to convertible promissory note holders for prepaid interest, shares | 29,500 | |||
Common stock issued to convertible promissory note holders as additional consideration | $ 44 | 192,347 | 192,391 | |
Common stock issued to convertible promissory note holders as additional consideration, shares | 44,250 | |||
Common stock issued to vendors for compensation | $ 29 | 134,387 | 134,416 | |
Common stock issued to vendors for compensation, shares | 28,822 | |||
Stock option-based compensation expense | 2,576,058 | 2,576,058 | ||
Stock option-based board of directors expense | 182,223 | 182,223 | ||
Net loss | (6,091,687) | $ (6,091,687) | ||
Common stock issued for exercise of options, shares | ||||
Ending balance, value at Jun. 30, 2021 | $ 7,580 | 20,936,050 | (22,115,408) | $ (1,171,778) |
Ending balance, shares at Jun. 30, 2021 | 7,579,285 | |||
Common stock issued for convertible note conversion | $ 324 | 1,605,852 | $ 1,606,176 | |
Common stock issued for convertible note conversion, shares | 324,150 | |||
Common stock issued to employees for compensation, shares | 11,000 | |||
Common stock issued to vendors for compensation | $ 20 | 198,207 | $ 198,227 | |
Common stock issued to vendors for compensation, shares | 19,753 | |||
Stock option-based board of directors expense | 478,949 | 478,949 | ||
Net loss | (5,966,287) | (5,966,287) | ||
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 acquisitions | $ 388 | 3,346,915 | 3,347,303 | |
Common stock issued for acquisitions, shares | 388,342 | |||
Common stock issued for legacy acquisition obligation | $ 453 | 1,249,547 | 1,250,000 | |
Common stock issued for legacy acquisition obligation, shares | 452,978 | |||
Common stock issued for exercise of options | $ 560 | 1,325,484 | $ 1,326,044 | |
Common stock issued for exercise of options, shares | 559,775 | 969,775 | ||
Stock based compensation expense | $ 11 | 2,348,460 | $ 2,348,471 | |
Stock based compensation expense, shares | 10,841 | |||
Ending balance, value at Jun. 30, 2022 | $ 12,749 | $ 56,885,815 | $ (28,081,695) | $ 28,816,869 |
Ending balance, shares at Jun. 30, 2022 | 12,747,624 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (5,966,287) | $ (6,091,687) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization and depreciation | 540,196 | 27,054 |
Common stock and stock option based compensation for employees and board of directors | 2,893,297 | 2,945,487 |
Accrued common stock issuance for additional asset acquisition consideration | 568,571 | 1,250,000 |
Issuance of common stock to vendors as compensation | 188,336 | 134,416 |
Loss on conversion of convertible notes | 279,730 | 515,464 |
Forgiveness of Paycheck Protection Program loan | (623,828) | (548,885) |
Acquisition contingent consideration fair value adjustment | (2,430,800) | |
Amortization of paid-in kind common stock interest on convertible notes | 180,642 | |
Issuance of common stock to employees to satisfy contingent liability | 92,765 | |
Issuance of common stock for additional cost to satisfy contingent liability | 20,217 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (295,076) | (411,571) |
Deferred costs/contract assets | (17,900) | 136,925 |
Prepaid expenses and other current assets | (330,496) | (25,933) |
Pre-offering costs | 470,136 | |
Other assets | (32,000) | |
Accounts payable | (132,032) | 260,002 |
Accrued liabilities | (73,475) | 97,068 |
Accrued bonuses | (271,095) | 440,357 |
Deferred revenue/contract liabilities | 291,858 | (231,937) |
Net cash used in operating activities | (4,940,865) | (1,209,616) |
Cash flow from investing activities: | ||
Purchases of equipment | (201,998) | (28,003) |
Acquisitions, net of cash acquired | (4,615,894) | |
Purchase of investments | (239,314) | |
Net cash used in investing activities | (5,057,206) | (28,003) |
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 exercise of stock options | 1,326,044 | |
Issuance of note receivable | (250,000) | |
Proceeds from Paycheck Protection Program loan | 623,828 | |
Proceeds from convertible promissory notes | 1,475,000 | |
Proceeds from issuance of common equity to investors | 346,010 | |
Pre-offering costs incurred | (470,136) | |
Net cash provided by financing activities | 26,475,808 | 1,974,702 |
Net change in cash, cash equivalents and restricted cash | 16,477,737 | 737,083 |
Cash, cash equivalents and restricted cash, beginning of year | 1,771,929 | 1,034,846 |
Cash, cash equivalents and restricted cash, end of year | 18,249,666 | 1,771,929 |
Non-cash Investing and Financing activities: | ||
Common stock issued for S5D acquisition | 2,297,303 | |
Common stock issued for asset acquisitions | 1,050,000 | |
Common stock to be issued for asset acquisitions | 734,037 | |
Conversion of convertible promissory notes into common stock | 1,606,176 | 1,487,059 |
Contingent acquisition consideration liability | 6,738,400 | |
Forgiveness of Paycheck Protection Program loan | 623,828 | 548,885 |
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 | 1,250,000 | |
Common stock issued to convertible note holders as additional compensation | 192,347 | |
Common stock issued for interest paid-in kind on convertible notes | 147,471 | |
Issuance of common stock for satisfaction of contingent liability | $ 46,958 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1. DESCRIPTION OF BUSINESS The Glimpse Group, Inc. (“Glimpse” and together with its wholly owned subsidiaries, collectively, the “Company”) is a Virtual (VR) and Augmented (AR) Reality company, comprised of a diversified portfolio of wholly owned VR and AR software and services companies. Glimpse’s subsidiary companies are located in the United States, Turkey and Australia. The Company was incorporated in the State of Nevada in June 2016. Glimpse’s robust VR/AR ecosystem, collaborative environment and business model strive to simplify the many challenges faced by companies in an emerging industry. Glimpse cultivates, optimizes and manages business operations while providing a strong network of professional relationships, thereby allowing the subsidiary company 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 9. |
LIQUIDITY AND CAPITAL RESOURCES
LIQUIDITY AND CAPITAL RESOURCES | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND CAPITAL RESOURCES | NOTE 2. LIQUIDITY AND CAPITAL RESOURCES The Company incurred losses of $ 5.97 6.09 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 $ 11.5 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 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, revenue recognition, cost of goods sold and allocation of the purchase price of assets relating to business combinations. Cash and Cash Equivalents, Restricted cash Cash and cash equivalents consist of cash and deposits in bank checking accounts with immediate access and cash equivalents that represent highly liquid investments. Restricted cash represents escrowed cash related to the Sector 5 Digital, LLC acquisition (see Note 4). The components of cash, cash equivalents and restricted cash on the consolidated statement of cash flows as of June 30, 2022 and 2021 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH As of June 30, 2022 2021 Cash and cash equivalents $ 16,249,666 $ 1,771,929 Restricted cash 2,000,000 - Total $ 18,249,666 $ 1,771,929 Accounts Receivable Accounts receivable consists primarily of amounts due from customers under normal trade terms. Allowances for uncollectible accounts are provided for based upon a variety of factors, including historical amounts written-off, an evaluation of current economic conditions, and assessment of customer collectability. As of June 30, 2022 and 2021 no allowance for doubtful accounts was recorded as all amounts were considered collectible. Customer Concentration and Credit Risk Two customers accounted for approximately 54 40 14 49 26 23 Two customers accounted for approximately 59 37 22 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 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. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. 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. Estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is typically one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, changes in the estimated values of the net assets recorded may change the amount of the purchase price allocated to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. At times, the Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. Intangible assets (other than Goodwill) Intangibles represent the allocation of a portion of the acquisitions purchase price (see Note 5). 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, being amortized, for impairment when current events indicate that the fair value may be less than the carrying value. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Goodwill is not amortized but instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: ● Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 — inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or ● Level 3 — unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company classifies its cash equivalents and investments within Level 1 of the fair value hierarchy on the basis of valuations based on quoted prices for the specific securities in an active market. The Company’s contingent consideration is categorized as Level 3 within the fair value hierarchy. Contingent consideration is recorded within contingent consideration, current and contingent consideration, non-current in the Company’s consolidated balance sheets as of June 30, 2022 and 2021. Contingent consideration has been recorded at its fair values using unobservable inputs and have included using the Monte Carlo simulation option pricing framework, incorporating contractual terms and assumptions regarding financial forecasts, discount rates, and volatility of forecasted revenue. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. The Company’s other financial instruments consist primarily of accounts receivable, note receivable, accounts payable, accrued liabilities and other liabilities approximate fair value due to the short-term nature of these instruments. The Company’s convertible debt approximated fair value due to its short-term nature and market rate of interest. Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual and Augmented Reality projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual and Augmented Reality software that is sold either as a license or as a SaaS subscription. The Company applies the following steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; ● recognize revenue as the performance obligation is satisfied; ● determine that collection is reasonably assured. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 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. A portion 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. Other contracts can include various services and products which are at times capable of being distinct, and therefore may be accounted for as separate performance obligations. 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. For distinct performance obligations recognized at a point in time, any unrecognized portion of revenue and any corresponding unrecognized expenses are presented as deferred revenue/contract liability and deferred costs/contract asset, respectively, in the accompanying consolidated balance sheets. Contract assets include cash and equity based payroll costs, and may include payments to consultants and vendors. For distinct performance obligations recognized over time, the Company records a contract asset (costs in excess of billings) when revenue is recognized prior to invoicing, or a contract liability (billings in excess of costs) when revenue is recognized subsequent to invoicing. Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products/services. Determining whether products/services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Further, judgment may be required to determine the standalone selling price for each distinct performance obligation. Disaggregation of Revenue The Company generated revenue for the years ended June 30, 2022 and 2021 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 a significant portion of Software Services projects and solutions (projects whereby, the development of the project leads to an identifiable asset with an alternative use to the Company) 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. Software Services Revenue for Software Services consulting services and website maintenance is recognized when the Company performs the services, typically on a monthly retainer basis. Revenue for Software License is recognized at the point of time in which the Company delivers the software and 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 JUNE 30, 2022 AND 2021 Timing of Revenue The timing of revenue recognition for the years ended June 30, 2022 and 2021 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION For the Years Ended June 30, 2022 2021 Products and services transferred at a point in time $ 5,181,482 $ 2,967,586 Products and services transferred/recognized over time 2,086,131 453,909 Total Revenue $ 7,267,613 $ 3,421,495 Remaining Performance Obligations Timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally records a receivable/contract asset when revenue is recognized prior to invoicing, or deferred revenue/contract liability when revenue is recognized subsequent to invoicing. For certain Software Services project contracts the Company 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 distinct performance obligation, and revenue is recognized upon completion, delivery and customer acceptance. Contracts 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 projects as separate distinct performance obligations and recognizes revenue upon the completion of each project or obligation, its delivery and customer acceptance. For contracts recognized over time, contract liabilities include billings invoiced for software projects for which the contract’s performance obligations are not complete. For certain other Software Services project contracts, the Company invoices customers for a substantial portion of the project upon entering into the contract due to their custom nature and revenue is recognized based upon percentage of completion. Revenue recognized subsequent to invoicing is recorded as a deferred revenue/contract liability (billings in excess of cost) and revenue recognized prior to invoicing is recorded as a deferred cost/contract asset (cost in excess of billings). 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 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 SaaS contracts, the Company generally invoices customers in advance at the beginning of the service term. For multi-period Software License contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Software License consist of providing clients with software designed by the Company. For Software License contracts, there are generally no ongoing support obligations unless specified in the contract (becoming a Software Service). Unfulfilled performance obligations represent amounts expected to be earned by the Company on executed contracts. As of June 30, 2022, the Company had approximately $ 2.61 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 Employee Stock-Based Compensation The Company recognizes stock-based compensation expense related to grants to employees or service providers based on grant date fair values of common stock or the stock options, which are amortized over the requisite period, as well as forfeitures as they occur. The Company values the options using the Black-Scholes Merton (“Black Scholes”) method utilizing various inputs such as expected term, expected volatility and the risk-free rate. The expected term reflects the application of the simplified method, which is the weighted average of the contractual term of the grant and the vesting period for each tranche. Expected volatility is derived from a weighted average of volatility inputs for the Company since its IPO. Prior to its IPO, expected volatility is derived from a weighted average of volatility inputs for comparable software and technology service companies. The risk-free rate is based on the implied yield of U.S. Treasury notes as of the grant date with a remaining term approximately equal to the expected life of the award. Research and Development Costs Research and development expenses are expensed as incurred, and include payroll, employee benefits and stock-based compensation expense. Research and development expenses also include third-party development and programming costs. Given the emerging industry and uncertain market environment the Company operates in, research and development costs are not capitalized. Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company establishes a valuation allowance if it is more likely than not that the deferred tax assets will not be recovered based on an evaluation of objective verifiable evidence. For tax positions that are more likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes The Company’s policy for recording interest and penalties associated with audits is to record such expense as a component of income tax expense. There were no amounts accrued for penalties or interest for the years ended June 30, 2022 and 2021. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 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, warrants 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 Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases Financial Instruments – Credit Losses In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates (ASC 326). The Company will be required to use a forward-looking expected credit loss model for accounts receivable, notes receivable, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities, if any, will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The Company does not expect to adopt this standard prior to July 1, 2023. The Company is currently evaluating the impact of this standard on its consolidated financial statements. Income Taxes In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, Income Taxes THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | NOTE 4. ACQUISITIONS Purchase of S5D In December 2021, Glimpse entered into a Membership Interest Sale Agreement (the “Agreement”), with Sector 5 Digital, LLC (“S5D”) and each of the equity holders of S5D named therein (collectively, the “Members”). S5D is an enterprise focused, immersive technology company that combines innovative storytelling with emerging technologies for industry leading organizations. The acquisition significantly expands the Company’s operating and financial scale, introduces new tier 1 customers specifically in the defense contractor and industrial segments, and bolsters the executive management team. In February 2022, S5D became a wholly-owned subsidiary of Glimpse. The aggregate consideration consisted of: (a) $ 4.0 277,201 4.0 19.0 2.0 19.0 2.0 7.00 The fair value allocation for the purchase price consideration paid at close was recorded as follows: SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE CONSIDERATION Purchase price consideration: Cash paid to members at closing $ 4,000,000 Company common stock fair value when released from escrow at closing 2,297,303 Fair value of contingent consideration to be achieved 9,169,200 Total purchase price $ 15,466,503 Fair value allocation of purchase price: Cash and cash equivalents $ 184,106 Accounts receivable 411,602 Other current assets 10,259 Equipment, net 60,479 Other assets 9,246 Accounts payable and accrued expenses (183,806 ) Contract liability (billings in excess of cost) (451,106 ) Intangible assets - customer relationships 2,820,000 Goodwill 12,605,723 $ 15,466,503 The Company’s fair value estimate of the contingent consideration for the S5D acquisition was determined using a Monte Carlo simulation method which accounts for the probabilities of various outcomes. The Company’s fair value estimate related to the identified intangible asset of customer relationships was determined using the Multi-Period Excess Earnings Method. This valuation method requires management to project revenues, customer attrition and cash flows for the reporting unit over a multiyear period, as well as determine the weighted average cost of capital to be used as a discount rate. The goodwill recognized in connection with the acquisition is primarily attributable to new markets access and will be deductible for tax purposes. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 In accordance with GAAP, the fair value of the contingent consideration was remeasured at June 30, 2022, based on market conditions as of that date. The remeasurement resulted in a fair value amount at June 30, 2022 of $ 6.74 2.43 Unaudited Pro Forma Results The unaudited pro forma financial information in the table below summarizes the combined results of operations for Glimpse and S5D, as if the companies were combined for the years ended June 30, 2022 and 2021. The unaudited pro forma financial information includes the business combination accounting effects resulting from this acquisition, including adjustments to reflect recognition of intangible asset amortization. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions had taken place at July 1, 2020. The approximate unaudited pro forma financial information if S5D was included since July 1, 2020 would be: SCHEDULE OF PROFORMA FINANCIAL INFORMATION For the Year Ended June 30, 2022 2021 Revenue $ 9,768,000 $ 5,973,000 Net loss $ (5,841,000 ) $ (6,685,000 ) The pro forma net loss was adjusted to exclude approximately $ 182,000 2.43 Costs related to the acquisition, which include legal, accounting and valuation fees, in the amount of approximately $ 182,000 The Company recognized approximately $ 1,395,000 1,784,000 2,430,800 AUGGD Asset Acquisition 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 (“ARI”), 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 market segments. Initial consideration for the purchase was $ 0.75 77,264 7.00 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 No liabilities were assumed as part of the acquisition and the primary assets acquired included employees, customer relationships and technology. The Company recorded the purchase price allocation as follows: SCHEDULE OF ASSETS ACQUISITION PURCHASE PRICE ALLOCATION Intangible assets: Customer relationships $ 250,000 Technology 250,000 Goodwill 250,000 Total $ 750,000 The goodwill recognized in connection with the acquisition is primarily attributable to new markets access and will be deductible for tax purposes. In June 2022, AUGGD achieved its initial revenue threshold as defined in the asset acquisition agreement, and was issued shares of Company stock in July 2022 reflecting the payment of additional asset acquisition consideration. This additional consideration of approximately $ 0.57 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 Asset Acquisition In October 2021, the Company, through its wholly owned subsidiary company, XR Terra, LLC, completed an acquisition of certain assets, as defined, from XR Terra, Inc., a developer of teaching platforms utilized in coding software used in VR and AR programming, a potential strategic growth segment for the Company as the immersive technology industry expands. Initial consideration for the purchase was $ 0.60 50% in Company common stock and 50% in cash 0.30 33,877 7.00 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 ASSETS ACQUISITION PURCHASE PRICE ALLOCATION Intangible assets: Technology $ 300,000 Goodwill 300,000 Total $ 600,000 The goodwill recognized in connection with the acquisition is primarily attributable to new markets access and will 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 JUNE 30, 2022 AND 2021 PulpoAR Asset Acquisition In May 2022, the Company, through its wholly owned subsidiary companies, Qreal, LLC and PulpoAR, LLC, completed an acquisition of certain assets, as defined, from PulpoAR Pulpoar Bilisim Anonim Sirketi, a Turkey based AR technology e-commerce company providing virtual try-on solutions primarily for the Beauty and Retail markets. Upon integration, PulpoAR’s technology is expected to propel the business development efforts of QReal. Initial consideration for the purchase was $ 2.0 75% in Company common stock (subject to a common stock floor price as defined) and 25% in cash 0.50 214,286 7.00 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 ASSETS ACQUISITION PURCHASE PRICE ALLOCATION Intangible assets: Technology $ 925,000 Goodwill 309,037 Total $ 1,234,037 The goodwill recognized in connection with the acquisition is primarily attributable to new markets access and will be deductible for tax purposes. The results of operations of PulpoAR 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. All acquisitions above were considered business combinations in accordance with GAAP. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 5. INTANGIBLE ASSETS Intangible assets, their respective amortization period, and accumulated amortization at June 30, 2022 are as follows: SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION As of June 30, 2022 Value ($) Amortization Period (Years) S5D AUGGD XR Terra PulpoAR Total Intangible Assets Customer Relationships $ 2,820,000 $ 250,000 $ - - $ 3,070,000 5 3 Technology - 250,000 300,000 925,000 1,475,000 3 Less: Accumulated Amortization (235,000 ) (145,824 ) (74,997 ) (25,694 ) (481,515 ) Intangible Assets, net $ 2,585,000 $ 354,176 $ 225,003 $ 899,306 $ 4,063,485 Intangible asset amortization expense for the year ended June 30, 2022 was approximately $ 482,000 Estimated intangible asset amortization expense for the next five years is as follow: SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE Fiscal Year Ended June 30, 2023 $ 1,139,000 Fiscal Year Ended June 30, 2024 $ 1,139,000 Fiscal Year Ended June 30, 2025 $ 893,000 Fiscal Year Ended June 30, 2026 $ 564,000 Fiscal Year Ended June 30, 2027 $ 329,000 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 6. FINANCIAL INSTRUMENTS Cash and Cash Equivalents and Investments The Company’s money market funds and investments (short term, investment grade corporate bonds) are categorized as Level 1 within the fair value hierarchy. As of June 30, 2022, the Company’s cash and cash equivalents and investments were as follows: SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS As of June 30, 2022 Cost Unrealized Gain (Loss) Fair Value Cash and Cash Equivalents Investments Cash $ 1,233,608 $ - $ 1,233,608 Level 1: Money market funds 15,016,058 - 15,016,058 15,016,058 Total cash and cash equivalents $ 16,249,666 $ - $ 15,016,058 $ 16,249,666 Level 1: Investments $ 245,187 $ (5,873 ) $ 239,314 $ 239,314 As of June 30, 2021, cash and cash equivalents consisted only of cash. Contingent Consideration As of June 30, 2022, the Company’s contingent consideration liabilities related to the acquisitions are categorized as Level 3 within the fair value hierarchy. Contingent consideration was valued at the time of acquisitions and at June 30, 2022 using unobservable inputs and have included using the Monte Carlo simulation model. This model incorporates revenue volatility, internal rate of return, and risk-free rate. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 A summary of the quantitative significant inputs used to value S5D’s contingent consideration as of June 30, 2022 was: revenue volatility of 60.1 12.6 3.0 As of June 30, 2022, the Company’s contingent consideration liability related to AUGGD is categorized as Level 3 within the fair value hierarchy as it is based on contractual amounts pursuant to the acquisition agreement. As of June 30, 2022, the Company’s contingent consideration liabilities current and non-current balances were as follows: SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION Cost Changes in Fair Value Fair Value Contingent Consideration As of June 30, 2022 Cost Changes in Fair Value Fair Value Contingent Consideration Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (662,700 ) $ 1,397,600 $ 1,397,600 Contingent consideration, current - AUGGD 568,571 - 568,571 568,571 Total contingent consideration, current $ 2,628,871 $ (662,700 ) $ 1,966,171 $ 1,966,171 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (1,768,100 ) $ 5,340,800 $ 5,340,800 Contingent consideration, non-current $ 7,108,900 $ (1,768,100 ) $ 5,340,800 $ 5,340,800 As of June 30, 2021, the Company’s contingent consideration liabilities related to legacy acquisitions (see Note 13) are categorized as Level 3 within the fair value hierarchy as they are based on contractual amounts pursuant to the respective acquisition agreements. As of June 30, 2021, the Company’s contingent consideration liabilities current balances were as follows: Cost Changes in Fair Value Fair Value Contingent Consideration As of June 30, 2021 Cost Changes in Fair Value Fair Value Contingent Consideration Level 3: Contingent consideration, current $ - $ 1,250,000 $ 1,250,000 $ 1,250,000 |
DEFERRED COSTS_CONTRACT ASSETS
DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES | 12 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES | NOTE 7. DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES At June 30, 2022 and 2021, deferred costs/contract assets totaling $ 39,484 29,512 35,469 29,512 4,015 0 841,389 98,425 533,214 98,425 308,175 0 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 The following table shows the reconciliation of the costs in excess of billings and billings in excess of costs for contracts recognized over time: SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME As of June 30, 2022 Cost incurred on uncompleted contracts $ 199,571 Estimated earnings 437,944 Earned revenue 637,515 Less: billings to date 941,676 Billings in excess of costs, net $ (304,161 ) Balance Sheet Classification Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts $ 4,015 Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts (308,175 ) Billings in excess of costs, net $ (304,161 ) |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 8. DEBT Convertible Promissory Notes 1 In December 2019 the Company raised $ 1.33 three-year The Notes 1 bore an interest rate of 10 Interest expense on the Notes 1 was approximately $ 103,000 The Notes 1 were convertible by a Note 1 holder at any time during the term into common stock of the Company at a fixed price of $4.50/share, or approximately 295,000 In December 2020 and primarily in January 2021, Note 1 holders converted approximately $ 1.21 0.33 4.00 0.52 The holders of the remaining unconverted Notes 1, equating to approximately $ 117,000 8,000 4.25 The Company recorded a loss, during the year ended June 30, 2022, on conversion of the remaining Notes 1 of approximately $ 18,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 Convertible Promissory Notes 2 In March 2021, the Company raised $ 1.48 The Notes 2 bore an interest rate of 10 Interest expense on the Notes 2 was approximately $ 78,000 The Notes 2 were convertible by a note holder at any time during the term into common stock of the Company at a fixed price of $ 5.00 295,000 March 5, 2023 5.00 1.313 0.16 The Company recorded a loss, during the year ended June 30, 2022, on conversion of the Notes 2 of approximately $ 0.26 Paycheck Protection Program Loan In March 2022 and February 2021, the Small Business Administration forgave principal and interest on $ 0.62 0.55 |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
EQUITY | NOTE 9. 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 0.52 5 129 0.87 0 As stated in Note 8, in conjunction with the IPO, the outstanding convertible promissory Notes 1 and 2 were satisfied in full through the issuance of 324,150 0.28 Securities Purchase Agreement (“SPA”) In November 2021, the Company sold $ 15.0 13.58 Under the terms of the SPA, the Company sold 1.50 0.75 10.00 14.63 0.56 five years 0.19 5 146 1.22 0 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 Common Stock Issued Common stock sold to Investors During the year ended June 30, 2022, the Company sold approximately 1.91 7.00 11.82 1.50 0.75 13.58 During the year ended June 30, 2021, the Company sold approximately 77,000 4.50 0.35 Common stock issued to Investors During the year ended June 30, 2022, in connection with the conversion of convertible promissory notes and in conjunction with the IPO, the Company issued approximately 324,000 332,000 74,000 Common stock issued for Acquisitions During the year ended June 30, 2022, the Company issued approximately 111,000 1.05 277,000 2.30 Common stock issued for satisfaction of contingent consideration During the year ended June 30, 2022 the Company issued approximately 453,000 1.25 32,000 Common stock issued to Vendors During the years ended June 30, 2022 and 2021, the Company issued approximately 20,000 29,000 198,000 134,000 Common stock issued for Exercise of Stock Options During the year ended June 30, 2022, the Company issued approximately 560,000 1.33 Common stock-based Compensation expense During the year ended June 30, 2022, the Company issued approximately 11,000 96,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 Employee Stock-Based Compensation The Company’s 2016 Equity Incentive Plan (the “Plan”), as amended, has approximately 10.62 5.17 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 STOCK OPTION FAIR VALUE ASSUMPTIONS 2022 2021 For the Years Ended June 30, 2022 2021 Weighted average expected terms (in years) 5.7 5.3 Weighted average expected volatility 236.7 % 126.6 % Weighted average risk-free interest rate 1.7 % 0.5 % Expected dividend yield 0.0 % 0.0 % The grant date fair value, for options granted during the years ended June 30, 2022 and 2021 was approximately $ 8.83 2.94 The following is a summary of the Company’s stock option activity for the years ended June 30, 2022 and 2021: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2020 4,092,593 $ 3.19 8.4 $ 5,553,916 Options Granted 766,419 4.66 9.7 383,210 Options Exercised - - - - Options Forfeited / Cancelled (118,102 ) 4.28 8.9 (89,956 ) Outstanding at June 30, 2021 4,740,910 $ 3.40 8.5 $ 7,893,467 Exercisable at June 30, 2021 4,346,734 $ 3.29 8.4 $ 7,659,692 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 1,037,252 9.15 9.6 2,578,954 Options Exercised (969,775 ) 2.90 5.4 (8,419,947 ) Options Forfeited / Cancelled (323,771 ) 5.65 7.9 (1,908,018 ) Outstanding at June 30, 2022 4,484,616 $ 4.68 7.0 $ 2,404,249 Exercisable at June 30, 2022 3,546,297 $ 3.54 6.3 $ 2,404,249 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 The Company’s stock option-based expense for the years ended June 30, 2022 and 2021 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE Year Ended Year Ended Stock option-based expense: Research and development expenses $ 1,470,039 $ 1,381,168 General and administrative expenses 210,876 373,506 Sales and marketing expenses 585,380 477,561 Cost of goods sold 49,617 526,156 Board option expense 481,386 187,096 Total $ 2,797,298 $ 2,945,487 At June 30, 2022 total unrecognized compensation expense to employees, board members and vendors related to stock options was approximately $ 6.71 2.42 The intrinsic value of stock options at June 30, 2022 and 2021 was computed using a fair market value of the common stock of $ 3.98 5.00 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 10. 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 Years Ended June 31 Numerator: 2022 2021 Net loss $ (5,966,287 ) $ (6,091,687 ) Denominator: Weighted-average common shares outstanding for basic and diluted net loss per share 11,731,383 7,259,249 Basic and diluted net loss per share $ (0.51 ) $ (0.84 ) 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 June 30, 2022 At June 30, 2021 Stock Options 4,484,616 4,740,910 Warrants 837,500 - Convertible Notes - 324,150 Total 5,322,116 5,065,060 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | NOTE 11. PROVISION FOR INCOME TAXES There was no The Company’s deferred tax assets as of June 30, 2022 and 2021 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS 2022 2021 As of June 30, As of June 30, 2022 2021 Deferred tax assets: Net-operating loss carryforward $ 7,795,509 $ 3,923,012 Stock-based compensation 392,174 536,265 Intangible asset amortization and other 180,297 - Total Deferred Tax Assets 8,367,980 4,459,277 Valuation allowance (8,367,980 ) (4,459,277 ) Deferred Tax Asset, Net $ - $ - The Company maintains a valuation allowance on deferred tax assets due to the uncertainty regarding the ability to utilize these deferred tax assets in the future. At June 30, 2022, the Company had potential utilizable aggregate net operating loss carryforwards (“NOLs”) of approximately $ 22.56 NOLs for the periods ending June 30, 2018 and prior ($ 2.88 19.68 Section 382 of the U.S. Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. The Company has not completed a Section 382 analysis of the NOL carryforwards. Consequently, the Company’s NOL carryforwards may be subject to annual limitations under Section 382. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and taxing strategies in making this assessment. As a result of the uncertainty in the realization of the Company’s deferred tax assets, the Company has provided a valuation allowance for the full amount of the deferred tax assets at June 30, 2022 and June 30, 2021. The Company’s valuation allowance during the years ended June 30, 2022 and 2021 increased by approximately $ 3.91 1.30 The expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with actual tax expense (benefit) as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION STATUTORY RATE For the year ended For the year ended Statutory Federal Income Tax Rate (21.00 )% (21.00 )% State and Local Taxes, Net of Federal Tax Benefit (13.56 )% (13.56 )% Stock Based Compensation Expense (ISO) 12.78 % 13.20 % Change in Valuation Allowance 21.78 % 21.36 % Income Taxes Provision (Benefit) 0.00 0.00 Upon completion of its 2022 U.S. income tax return, the Company may identify additional remeasurement adjustments. The Company will continue to assess its provision for income taxes as future guidance is issued, but does not currently anticipate significant revisions will be necessary. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 12. RELATED PARTY TRANSACTIONS ARI In March 2022, the Company lent to ARI, the entity from which the assets of AUGGD were bought (see Note 4), $ 0.25 The note bears interest at the rate of 1 The Company recognized no The note was extinguished subsequent to June 30, 2022. See note 14. Debt The convertible promissory Notes 1 included participation by the Company’s executives and independent members of the Company’s Board in the amount of $ 0.2 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13. COMMITMENTS AND CONTINGENCIES Operating Leases New York The Company has an office space lease expiring on December 31, 2024. Texas The Company has an office space lease expiring, as amended, on February 28, 2025. The lease requires the Company to pay a pro-rata share of common area maintenance, insurance and real estate taxes. Turkey The Company has four office space leases expiring in November 2022 through January 2023. The approximate future aggregate minimum rental commitments under all non-cancelable operating leases (including common area maintenance) are as follows: SCHEDULE OF OPERATING LEASES MINIMUM RENTAL COMMITMENT Fiscal Year Ended June 30, 2023 $ 390,000 Fiscal Year Ended June 30, 2024 $ 309,000 Fiscal Year Ended June 30, 2025 $ 178,000 Rent expense for the years ended June 30, 2022 and 2021 was approximately $ 408,000 296,000 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 Contingent Consideration for Acquisitions Contingent consideration for acquisitions, consists of the following as of June 30, 2022 and 2021, respectively: SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS 2022 2021 As of June 30, 2022 2021 S5D, current portion (see Note 4) $ 1,397,600 $ - AUGGD (see Note 4) 568,571 - Kabaq 3D Technologies, LLC - 750,000 KreatAR, LLC - 500,000 Subtotal $ 1,966,171 $ 1,250,000 S5D, net of current portion (see Note 4) 5,340,800 - Total contingent consideration for acquisitions $ 7,306,971 $ 1,250,000 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 $ 0.75 375,000 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 $ 0.5 35,000 2.00 42,978 0.43 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% of the net proceeds from such divestiture or sale to the senior management team of the divested subsidiary company. Currently, there were no active discussions pertaining to a potential divestiture or sale of any of the Company’s subsidiaries. COVID-19 The COVID-19 pandemic caused significant business and financial markets disruption worldwide and there was significant uncertainty around the duration of this disruption and its ongoing effects on our business. This has primarily manifested itself in prolonged sales cycles. We continue to monitor the situation and the effects on our business and operations. While some level of potential 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 to be material to our business and operations. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14. SUBSEQUENT EVENTS Purchase of Brightline Interactive, LLC In May 2022, the Company entered into an Agreement and Plan of Merger (the “BLI Agreement”) to purchase all of the membership interests of Brightline Interactive, LLC (“BLI”), an immersive technology company that provides VR and AR based training scenarios and simulations for commercial and government customers. The transaction’s total potential purchase price is $ 32.5 8.0 3.0 5.0 0.71 24.5 12 7.00 In August 2022, the BLI transaction closed and BLI became a wholly-owned subsidiary of the Company. $ 3 0.71 BLI had revenue for the year ended December 31, 2021 of approximately $ 5 The Company is currently in the process of 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. Accordingly, these amounts are not included here. Extinguishment of ARI Note Receivable In July 2022, the Company and ARI agreed to extinguish the note, including all accrued interest. The note amount reduced the amount the Company owed ARI for AUGGD achieving its initial revenue threshold as defined in the asset purchase agreement. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
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, revenue recognition, cost of goods sold and allocation of the purchase price of assets relating to business combinations. |
Cash and Cash Equivalents, Restricted cash | Cash and Cash Equivalents, Restricted cash Cash and cash equivalents consist of cash and deposits in bank checking accounts with immediate access and cash equivalents that represent highly liquid investments. Restricted cash represents escrowed cash related to the Sector 5 Digital, LLC acquisition (see Note 4). The components of cash, cash equivalents and restricted cash on the consolidated statement of cash flows as of June 30, 2022 and 2021 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH As of June 30, 2022 2021 Cash and cash equivalents $ 16,249,666 $ 1,771,929 Restricted cash 2,000,000 - Total $ 18,249,666 $ 1,771,929 |
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 June 30, 2022 and 2021 no allowance for doubtful accounts was recorded as all amounts were considered collectible. |
Customer Concentration and Credit Risk | Customer Concentration and Credit Risk Two customers accounted for approximately 54 40 14 49 26 23 Two customers accounted for approximately 59 37 22 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. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
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. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. 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. Estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is typically one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, changes in the estimated values of the net assets recorded may change the amount of the purchase price allocated to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. At times, the Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. |
Intangible assets (other than Goodwill) | Intangible assets (other than Goodwill) Intangibles represent the allocation of a portion of the acquisitions purchase price (see Note 5). 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, being amortized, for impairment when current events indicate that the fair value may be less than the carrying value. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Goodwill is not amortized but instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy, which is based on three levels of inputs, the first two of which are considered observable and the last unobservable, that may be used to measure fair value, is as follows: ● Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 — inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or ● Level 3 — unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company classifies its cash equivalents and investments within Level 1 of the fair value hierarchy on the basis of valuations based on quoted prices for the specific securities in an active market. The Company’s contingent consideration is categorized as Level 3 within the fair value hierarchy. Contingent consideration is recorded within contingent consideration, current and contingent consideration, non-current in the Company’s consolidated balance sheets as of June 30, 2022 and 2021. Contingent consideration has been recorded at its fair values using unobservable inputs and have included using the Monte Carlo simulation option pricing framework, incorporating contractual terms and assumptions regarding financial forecasts, discount rates, and volatility of forecasted revenue. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management with the assistance of a third-party valuation specialist. The Company’s other financial instruments consist primarily of accounts receivable, note receivable, accounts payable, accrued liabilities and other liabilities approximate fair value due to the short-term nature of these instruments. The Company’s convertible debt approximated fair value due to its short-term nature and market rate of interest. |
Revenue Recognition | Revenue Recognition Nature of Revenues The Company reports its revenues in two categories: ● Software Services: Virtual and Augmented Reality projects, solutions and consulting services. ● Software License and Software-as-a-Service (“SaaS”): Virtual and Augmented Reality software that is sold either as a license or as a SaaS subscription. The Company applies the following steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; ● recognize revenue as the performance obligation is satisfied; ● determine that collection is reasonably assured. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 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. A portion 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. Other contracts can include various services and products which are at times capable of being distinct, and therefore may be accounted for as separate performance obligations. 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. For distinct performance obligations recognized at a point in time, any unrecognized portion of revenue and any corresponding unrecognized expenses are presented as deferred revenue/contract liability and deferred costs/contract asset, respectively, in the accompanying consolidated balance sheets. Contract assets include cash and equity based payroll costs, and may include payments to consultants and vendors. For distinct performance obligations recognized over time, the Company records a contract asset (costs in excess of billings) when revenue is recognized prior to invoicing, or a contract liability (billings in excess of costs) when revenue is recognized subsequent to invoicing. Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products/services. Determining whether products/services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Further, judgment may be required to determine the standalone selling price for each distinct performance obligation. Disaggregation of Revenue The Company generated revenue for the years ended June 30, 2022 and 2021 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 a significant portion of Software Services projects and solutions (projects whereby, the development of the project leads to an identifiable asset with an alternative use to the Company) 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. Software Services Revenue for Software Services consulting services and website maintenance is recognized when the Company performs the services, typically on a monthly retainer basis. Revenue for Software License is recognized at the point of time in which the Company delivers the software and 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 JUNE 30, 2022 AND 2021 Timing of Revenue The timing of revenue recognition for the years ended June 30, 2022 and 2021 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION For the Years Ended June 30, 2022 2021 Products and services transferred at a point in time $ 5,181,482 $ 2,967,586 Products and services transferred/recognized over time 2,086,131 453,909 Total Revenue $ 7,267,613 $ 3,421,495 Remaining Performance Obligations Timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally records a receivable/contract asset when revenue is recognized prior to invoicing, or deferred revenue/contract liability when revenue is recognized subsequent to invoicing. For certain Software Services project contracts the Company 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 distinct performance obligation, and revenue is recognized upon completion, delivery and customer acceptance. Contracts 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 projects as separate distinct performance obligations and recognizes revenue upon the completion of each project or obligation, its delivery and customer acceptance. For contracts recognized over time, contract liabilities include billings invoiced for software projects for which the contract’s performance obligations are not complete. For certain other Software Services project contracts, the Company invoices customers for a substantial portion of the project upon entering into the contract due to their custom nature and revenue is recognized based upon percentage of completion. Revenue recognized subsequent to invoicing is recorded as a deferred revenue/contract liability (billings in excess of cost) and revenue recognized prior to invoicing is recorded as a deferred cost/contract asset (cost in excess of billings). 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 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 SaaS contracts, the Company generally invoices customers in advance at the beginning of the service term. For multi-period Software License contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Software License consist of providing clients with software designed by the Company. For Software License contracts, there are generally no ongoing support obligations unless specified in the contract (becoming a Software Service). Unfulfilled performance obligations represent amounts expected to be earned by the Company on executed contracts. As of June 30, 2022, the Company had approximately $ 2.61 THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
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. |
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 amounts accrued for penalties or interest for the years ended June 30, 2022 and 2021. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position. THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
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, warrants 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 Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases Financial Instruments – Credit Losses In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates (ASC 326). The Company will be required to use a forward-looking expected credit loss model for accounts receivable, notes receivable, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities, if any, will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The Company does not expect to adopt this standard prior to July 1, 2023. The Company is currently evaluating the impact of this standard on its consolidated financial statements. Income Taxes In December 2019, the FASB issued ASU 2019-12 to simplify the accounting in ASC 740, Income Taxes THE GLIMPSE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2022 AND 2021 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | The components of cash, cash equivalents and restricted cash on the consolidated statement of cash flows as of June 30, 2022 and 2021 are as follows: SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH As of June 30, 2022 2021 Cash and cash equivalents $ 16,249,666 $ 1,771,929 Restricted cash 2,000,000 - Total $ 18,249,666 $ 1,771,929 |
SCHEDULE OF TIMING REVENUE RECOGNITION | The timing of revenue recognition for the years ended June 30, 2022 and 2021 was as follows: SCHEDULE OF TIMING REVENUE RECOGNITION For the Years Ended June 30, 2022 2021 Products and services transferred at a point in time $ 5,181,482 $ 2,967,586 Products and services transferred/recognized over time 2,086,131 453,909 Total Revenue $ 7,267,613 $ 3,421,495 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Augmented Reality Investments Pty Ltd [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF ASSETS ACQUISITION PURCHASE PRICE ALLOCATION | SCHEDULE OF ASSETS ACQUISITION PURCHASE PRICE ALLOCATION Intangible assets: Customer relationships $ 250,000 Technology 250,000 Goodwill 250,000 Total $ 750,000 |
XR Terra, Inc. [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF ASSETS ACQUISITION PURCHASE PRICE ALLOCATION | SCHEDULE OF ASSETS ACQUISITION PURCHASE PRICE ALLOCATION Intangible assets: Technology $ 300,000 Goodwill 300,000 Total $ 600,000 |
PulpoAR, LLC [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF ASSETS ACQUISITION PURCHASE PRICE ALLOCATION | SCHEDULE OF ASSETS ACQUISITION PURCHASE PRICE ALLOCATION Intangible assets: Technology $ 925,000 Goodwill 309,037 Total $ 1,234,037 |
Sector 5 Digital, LLC [Member] | |
Business Acquisition [Line Items] | |
SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE CONSIDERATION | The fair value allocation for the purchase price consideration paid at close was recorded as follows: SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE CONSIDERATION Purchase price consideration: Cash paid to members at closing $ 4,000,000 Company common stock fair value when released from escrow at closing 2,297,303 Fair value of contingent consideration to be achieved 9,169,200 Total purchase price $ 15,466,503 Fair value allocation of purchase price: Cash and cash equivalents $ 184,106 Accounts receivable 411,602 Other current assets 10,259 Equipment, net 60,479 Other assets 9,246 Accounts payable and accrued expenses (183,806 ) Contract liability (billings in excess of cost) (451,106 ) Intangible assets - customer relationships 2,820,000 Goodwill 12,605,723 $ 15,466,503 |
SCHEDULE OF PROFORMA FINANCIAL INFORMATION | The approximate unaudited pro forma financial information if S5D was included since July 1, 2020 would be: SCHEDULE OF PROFORMA FINANCIAL INFORMATION For the Year Ended June 30, 2022 2021 Revenue $ 9,768,000 $ 5,973,000 Net loss $ (5,841,000 ) $ (6,685,000 ) |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION | Intangible assets, their respective amortization period, and accumulated amortization at June 30, 2022 are as follows: SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION As of June 30, 2022 Value ($) Amortization Period (Years) S5D AUGGD XR Terra PulpoAR Total Intangible Assets Customer Relationships $ 2,820,000 $ 250,000 $ - - $ 3,070,000 5 3 Technology - 250,000 300,000 925,000 1,475,000 3 Less: Accumulated Amortization (235,000 ) (145,824 ) (74,997 ) (25,694 ) (481,515 ) Intangible Assets, net $ 2,585,000 $ 354,176 $ 225,003 $ 899,306 $ 4,063,485 |
SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE | Estimated intangible asset amortization expense for the next five years is as follow: SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE Fiscal Year Ended June 30, 2023 $ 1,139,000 Fiscal Year Ended June 30, 2024 $ 1,139,000 Fiscal Year Ended June 30, 2025 $ 893,000 Fiscal Year Ended June 30, 2026 $ 564,000 Fiscal Year Ended June 30, 2027 $ 329,000 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS | SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS As of June 30, 2022 Cost Unrealized Gain (Loss) Fair Value Cash and Cash Equivalents Investments Cash $ 1,233,608 $ - $ 1,233,608 Level 1: Money market funds 15,016,058 - 15,016,058 15,016,058 Total cash and cash equivalents $ 16,249,666 $ - $ 15,016,058 $ 16,249,666 Level 1: Investments $ 245,187 $ (5,873 ) $ 239,314 $ 239,314 |
SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION | As of June 30, 2022, the Company’s contingent consideration liabilities current and non-current balances were as follows: SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION Cost Changes in Fair Value Fair Value Contingent Consideration As of June 30, 2022 Cost Changes in Fair Value Fair Value Contingent Consideration Level 3: Contingent consideration, current - S5D $ 2,060,300 $ (662,700 ) $ 1,397,600 $ 1,397,600 Contingent consideration, current - AUGGD 568,571 - 568,571 568,571 Total contingent consideration, current $ 2,628,871 $ (662,700 ) $ 1,966,171 $ 1,966,171 Level 3: Contingent consideration, non-current - S5D $ 7,108,900 $ (1,768,100 ) $ 5,340,800 $ 5,340,800 Contingent consideration, non-current $ 7,108,900 $ (1,768,100 ) $ 5,340,800 $ 5,340,800 As of June 30, 2021, the Company’s contingent consideration liabilities current balances were as follows: Cost Changes in Fair Value Fair Value Contingent Consideration As of June 30, 2021 Cost Changes in Fair Value Fair Value Contingent Consideration Level 3: Contingent consideration, current $ - $ 1,250,000 $ 1,250,000 $ 1,250,000 |
DEFERRED COSTS_CONTRACT ASSET_2
DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME | The following table shows the reconciliation of the costs in excess of billings and billings in excess of costs for contracts recognized over time: SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME As of June 30, 2022 Cost incurred on uncompleted contracts $ 199,571 Estimated earnings 437,944 Earned revenue 637,515 Less: billings to date 941,676 Billings in excess of costs, net $ (304,161 ) Balance Sheet Classification Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts $ 4,015 Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts (308,175 ) Billings in excess of costs, net $ (304,161 ) |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
SCHEDULE OF STOCK OPTION FAIR VALUE 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 STOCK OPTION FAIR VALUE ASSUMPTIONS 2022 2021 For the Years Ended June 30, 2022 2021 Weighted average expected terms (in years) 5.7 5.3 Weighted average expected volatility 236.7 % 126.6 % Weighted average risk-free interest rate 1.7 % 0.5 % Expected dividend yield 0.0 % 0.0 % |
SUMMARY OF STOCK OPTION ACTIVITY | The following is a summary of the Company’s stock option activity for the years ended June 30, 2022 and 2021: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Exercise Contractual Intrinsic Options Price Term (Yrs) Value Outstanding at July 1, 2020 4,092,593 $ 3.19 8.4 $ 5,553,916 Options Granted 766,419 4.66 9.7 383,210 Options Exercised - - - - Options Forfeited / Cancelled (118,102 ) 4.28 8.9 (89,956 ) Outstanding at June 30, 2021 4,740,910 $ 3.40 8.5 $ 7,893,467 Exercisable at June 30, 2021 4,346,734 $ 3.29 8.4 $ 7,659,692 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 1,037,252 9.15 9.6 2,578,954 Options Exercised (969,775 ) 2.90 5.4 (8,419,947 ) Options Forfeited / Cancelled (323,771 ) 5.65 7.9 (1,908,018 ) Outstanding at June 30, 2022 4,484,616 $ 4.68 7.0 $ 2,404,249 Exercisable at June 30, 2022 3,546,297 $ 3.54 6.3 $ 2,404,249 |
SCHEDULE OF STOCK OPTION-BASED EXPENSE | The Company’s stock option-based expense for the years ended June 30, 2022 and 2021 consisted of the following: SCHEDULE OF STOCK OPTION-BASED EXPENSE Year Ended Year Ended Stock option-based expense: Research and development expenses $ 1,470,039 $ 1,381,168 General and administrative expenses 210,876 373,506 Sales and marketing expenses 585,380 477,561 Cost of goods sold 49,617 526,156 Board option expense 481,386 187,096 Total $ 2,797,298 $ 2,945,487 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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 Years Ended June 31 Numerator: 2022 2021 Net loss $ (5,966,287 ) $ (6,091,687 ) Denominator: Weighted-average common shares outstanding for basic and diluted net loss per share 11,731,383 7,259,249 Basic and diluted net loss per share $ (0.51 ) $ (0.84 ) |
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 June 30, 2022 At June 30, 2021 Stock Options 4,484,616 4,740,910 Warrants 837,500 - Convertible Notes - 324,150 Total 5,322,116 5,065,060 |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF DEFERRED TAX ASSETS | The Company’s deferred tax assets as of June 30, 2022 and 2021 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS 2022 2021 As of June 30, As of June 30, 2022 2021 Deferred tax assets: Net-operating loss carryforward $ 7,795,509 $ 3,923,012 Stock-based compensation 392,174 536,265 Intangible asset amortization and other 180,297 - Total Deferred Tax Assets 8,367,980 4,459,277 Valuation allowance (8,367,980 ) (4,459,277 ) Deferred Tax Asset, Net $ - $ - |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION STATUTORY RATE | The expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with actual tax expense (benefit) as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION STATUTORY RATE For the year ended For the year ended Statutory Federal Income Tax Rate (21.00 )% (21.00 )% State and Local Taxes, Net of Federal Tax Benefit (13.56 )% (13.56 )% Stock Based Compensation Expense (ISO) 12.78 % 13.20 % Change in Valuation Allowance 21.78 % 21.36 % Income Taxes Provision (Benefit) 0.00 0.00 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF OPERATING LEASES MINIMUM RENTAL COMMITMENT | The approximate future aggregate minimum rental commitments under all non-cancelable operating leases (including common area maintenance) are as follows: SCHEDULE OF OPERATING LEASES MINIMUM RENTAL COMMITMENT Fiscal Year Ended June 30, 2023 $ 390,000 Fiscal Year Ended June 30, 2024 $ 309,000 Fiscal Year Ended June 30, 2025 $ 178,000 |
SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS | Contingent consideration for acquisitions, consists of the following as of June 30, 2022 and 2021, respectively: SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS 2022 2021 As of June 30, 2022 2021 S5D, current portion (see Note 4) $ 1,397,600 $ - AUGGD (see Note 4) 568,571 - Kabaq 3D Technologies, LLC - 750,000 KreatAR, LLC - 500,000 Subtotal $ 1,966,171 $ 1,250,000 S5D, net of current portion (see Note 4) 5,340,800 - Total contingent consideration for acquisitions $ 7,306,971 $ 1,250,000 |
LIQUIDITY AND CAPITAL RESOURC_2
LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($) | 1 Months Ended | 5 Months Ended | 12 Months Ended | ||
Jul. 02, 2021 | Nov. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Net loss | $ (1,784,000) | $ 5,966,287 | $ 6,091,687 | ||
Proceeds from initial public offering | 11,821,364 | ||||
Proceeds from issuance of common stock | 346,010 | ||||
Cash and cash equivalents | $ 11,500,000 | $ 16,249,666 | $ 16,249,666 | $ 1,771,929 | |
Security Purchase Agreement [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Proceeds from issuance of common stock | $ 13,600,000 | ||||
IPO [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Shares issued price per share | $ 7 | $ 7 | $ 7 | ||
Proceeds from initial public offering | $ 11,800,000 |
SCHEDULE OF COMPONENTS OF CASH,
SCHEDULE OF COMPONENTS OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) | Jun. 30, 2022 | Nov. 30, 2021 | Jun. 30, 2021 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 16,249,666 | $ 11,500,000 | $ 1,771,929 |
Restricted cash | 2,000,000 | ||
Total | $ 18,249,666 | $ 1,771,929 |
SCHEDULE OF TIMING REVENUE RECO
SCHEDULE OF TIMING REVENUE RECOGNITION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 7,267,613 | $ 3,421,495 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 5,181,482 | 2,967,586 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 2,086,131 | $ 453,909 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Product Information [Line Items] | ||
Revenue remaining performance obligation | $ 2,610,000 | |
Income tax examination, likelihood of unfavorable settlement | greater than 50% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 54% | 49% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 40% | 26% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 14% | 23% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 59% | 71% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 37% | 57% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 22% | 14% |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION PURCHASE PRICE CONSIDERATION (Details) - USD ($) | 12 Months Ended | ||
Feb. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | |||
Company common stock fair value when released from escrow at closing | $ 2,297,303 | ||
Goodwill | $ 13,464,760 | ||
Membership Interest Sale Agreement [Member] | Sector 5 Digital, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid | $ 4,000,000 | ||
Company common stock fair value when released from escrow at closing | 2,297,303 | ||
Fair value of contingent consideration to be achieved | 9,169,200 | ||
Total Purchase price | 15,466,503 | ||
Cash and cash equivalents | 184,106 | ||
Accounts receivables | 411,602 | ||
Other current assets | 10,259 | ||
Equipment, net | 60,479 | ||
Other assets | 9,246 | ||
Accounts payable and accrued expenses | (183,806) | ||
Contract liability | (451,106) | ||
Intangible assets - customer relationships | 2,820,000 | ||
Goodwill | 12,605,723 | ||
Total purchase price consideration | $ 15,466,503 |
SCHEDULE OF PROFORMA FINANCIAL
SCHEDULE OF PROFORMA FINANCIAL INFORMATION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Revenue | $ 9,768,000 | $ 5,973,000 |
Net loss | $ (5,841,000) | $ (6,685,000) |
SCHEDULE OF ASSETS ACQUISITION
SCHEDULE OF ASSETS ACQUISITION PURCHASE PRICE ALLOCATION (Details) - USD ($) | Jun. 30, 2022 | May 31, 2022 | Oct. 31, 2021 | Aug. 31, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 13,464,760 | ||||
Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Technology | 3,070,000 | ||||
Technology-Based Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Technology | 1,475,000 | ||||
Augmented Reality Investments Pty Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 250,000 | ||||
Total | 750,000 | ||||
Augmented Reality Investments Pty Ltd [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Technology | 250,000 | ||||
Augmented Reality Investments Pty Ltd [Member] | Technology-Based Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Technology | $ 250,000 | ||||
XR Terra, LLC. [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 300,000 | ||||
Total | 600,000 | ||||
XR Terra, LLC. [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Technology | |||||
XR Terra, LLC. [Member] | Technology-Based Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Technology | 300,000 | $ 300,000 | |||
PulpoAR, LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 309,037 | ||||
Total | 1,234,037 | ||||
PulpoAR, LLC [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Technology | |||||
PulpoAR, LLC [Member] | Technology-Based Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Technology | $ 925,000 | $ 925,000 |
ACQUISITIONS (Details Narrative
ACQUISITIONS (Details Narrative) - USD ($) | 1 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Feb. 01, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | May 31, 2022 | Oct. 31, 2021 | Aug. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||||||||
Change in fair value of acquisition contingent consideration | $ 2,430,800 | |||||||||
Revenues | $ 1,395,000 | |||||||||
Net income loss | $ 1,784,000 | (5,966,287) | $ (6,091,687) | |||||||
Augmented Reality Investments Pty Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Share price | $ 7 | |||||||||
Assets acquisition, intial consideration | $ 750,000 | |||||||||
Stock issued for acquisition of assets | 77,264 | |||||||||
XR Terra, Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Share price | $ 7 | |||||||||
Assets acquisition, intial consideration | $ 600,000 | |||||||||
Stock issued for acquisition of assets | 33,877 | |||||||||
Assets acquisition, consideration payment | $ 300,000 | |||||||||
Assets acquisition, payment description | 50% in Company common stock and 50% in cash | |||||||||
PulpoAR, LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Share price | $ 7 | |||||||||
Assets acquisition, intial consideration | $ 2,000,000 | |||||||||
Assets acquisition, consideration payment | $ 500,000 | $ 500,000 | ||||||||
Asset acquisition, description | 75% in Company common stock (subject to a common stock floor price as defined) and 25% in cash | |||||||||
PulpoAR, LLC [Member] | Forecast [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Stock issued for acquisition of assets | 214,286 | |||||||||
Operating Expense [Member] | Augmented Reality Investments Pty Ltd [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Assets acquisition, consideration payment | $ 570,000 | |||||||||
Membership Interest Sale Agreement [Member] | Sector 5 Digital, LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment to acquire business | $ 4,000,000 | |||||||||
Shares issued for acquisition, shares | 277,201 | |||||||||
Shares issued for acquisition, value | $ 4,000,000 | |||||||||
Share price | $ 7 | |||||||||
Fair value of asset acquired | $ 6,740,000 | |||||||||
Reduction of asset acquired | $ 2,430,000 | |||||||||
Business acquisition related costs | 182,000 | |||||||||
Change in fair value of acquisition contingent consideration | 2,430,800 | |||||||||
Membership Interest Sale Agreement [Member] | Sector 5 Digital, LLC [Member] | General and Administrative Expense [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition related costs | $ 182,000 | |||||||||
Membership Interest Sale Agreement [Member] | Sector 5 Digital, LLC [Member] | Contingent Consideration Liability [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Restricted cash | $ 2,000,000 | |||||||||
Membership Interest Sale Agreement [Member] | Sector 5 Digital, LLC [Member] | Maximum [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration liability | 19,000,000 | |||||||||
Payment for contingent liability | $ 2,000,000 |
SCHEDULE OF INTANGIBLE ASSETS,
SCHEDULE OF INTANGIBLE ASSETS, AMORTIZATION PERIOD AND ACCUMULATED AMORTIZATION (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | May 31, 2022 | Oct. 31, 2021 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Less: Accumulated Amortization | $ (481,515) | |||
Intangible Assets, net | 4,063,485 | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | 3,070,000 | |||
Technology-Based Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | $ 1,475,000 | |||
Intangible assets amortization period | 3 years | |||
Sector 5 Digital [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Less: Accumulated Amortization | $ (235,000) | |||
Intangible Assets, net | 2,585,000 | |||
Sector 5 Digital [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | $ 2,820,000 | |||
Intangible assets amortization period | 5 years | |||
Sector 5 Digital [Member] | Technology-Based Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | ||||
AUGGD [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Less: Accumulated Amortization | (145,824) | |||
Intangible Assets, net | 354,176 | |||
AUGGD [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | $ 250,000 | |||
Intangible assets amortization period | 3 years | |||
AUGGD [Member] | Technology-Based Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | $ 250,000 | |||
XR Terra, LLC. [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Less: Accumulated Amortization | (74,997) | |||
Intangible Assets, net | 225,003 | |||
XR Terra, LLC. [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | ||||
XR Terra, LLC. [Member] | Technology-Based Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | 300,000 | $ 300,000 | ||
PulpoAR, LLC [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Less: Accumulated Amortization | (25,694) | |||
Intangible Assets, net | 899,306 | |||
PulpoAR, LLC [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | ||||
PulpoAR, LLC [Member] | Technology-Based Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, gross | $ 925,000 | $ 925,000 |
SCHEDULE OF INTANGIBLE ASSET AM
SCHEDULE OF INTANGIBLE ASSET AMORTIZATION EXPENSE (Details) | Jun. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal Year Ended June 30, 2023 | $ 1,139,000 |
Fiscal Year Ended June 30, 2024 | 1,139,000 |
Fiscal Year Ended June 30, 2025 | 893,000 |
Fiscal Year Ended June 30, 2026 | 564,000 |
Fiscal Year Ended June 30, 2027 | $ 329,000 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible asset amortization expense | $ 482,000 |
SCHEDULE OF CASH AND CASH EQUIV
SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Nov. 30, 2021 | Jun. 30, 2021 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Cash and Cash Equivalents | $ 16,249,666 | $ 11,500,000 | $ 1,771,929 |
Cash [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Cost | 1,233,608 | ||
Cash and Cash Equivalents | 1,233,608 | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Cost | 15,016,058 | ||
Cash and Cash Equivalents | 15,016,058 | ||
Fair Value | 15,016,058 | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Cost | 16,249,666 | ||
Cash and Cash Equivalents | 16,249,666 | ||
Fair Value | 15,016,058 | ||
Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Cost | 245,187 | ||
Fair Value | 239,314 | ||
Unrealized Gain (Loss) | (5,873) | ||
Investments | $ 239,314 |
SCHEDULE OF FAIR VALUE OF CONTI
SCHEDULE OF FAIR VALUE OF CONTINGENT CONSIDERATION (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | $ 1,966,171 | $ 1,250,000 |
Sector 5 Digital, LLC [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | 1,397,600 | |
Contingent consideration, non-current | 5,340,800 | |
AUGGD [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | 568,571 | |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | 2,628,871 | |
Estimate of Fair Value Measurement [Member] | Sector 5 Digital, LLC [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | 2,060,300 | |
Contingent consideration, non-current | 7,108,900 | |
Estimate of Fair Value Measurement [Member] | AUGGD [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | 568,571 | |
Changes Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | (662,700) | 1,250,000 |
Changes Measurement [Member] | Sector 5 Digital, LLC [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | (662,700) | |
Contingent consideration, non-current | (1,768,100) | |
Changes Measurement [Member] | AUGGD [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | ||
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | 1,966,171 | $ 1,250,000 |
Reported Value Measurement [Member] | Sector 5 Digital, LLC [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | 1,397,600 | |
Contingent consideration, non-current | 5,340,800 | |
Reported Value Measurement [Member] | AUGGD [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total contingent consideration, current | $ 568,571 |
SCHEDULE OF CONTINGENT CONSIDER
SCHEDULE OF CONTINGENT CONSIDERATION (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent consideration, current | $ 1,966,171 | $ 1,250,000 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent consideration, current | 2,628,871 | |
Changes Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent consideration, current | (662,700) | 1,250,000 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent consideration, current | $ 1,966,171 | $ 1,250,000 |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details Narrative) - Sector 5 Digital, LLC [Member] | Jun. 30, 2022 |
Measurement Input, Price Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business combination, contingent consideration, measurement input | 60.1 |
Measurement Input, Discount Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business combination, contingent consideration, measurement input | 12.6 |
Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business combination, contingent consideration, measurement input | 3 |
SCHEDULE OF RECONCILIATION OF C
SCHEDULE OF RECONCILIATION OF COST IN EXCESS OF BILLING FOR CONTRACT RECOGNIZED OVER TIME (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Disaggregation of Revenue [Line Items] | ||
Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts | $ 39,484 | $ 29,512 |
Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts | (841,389) | (98,425) |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Cost incurred on uncompleted contracts | 199,571 | |
Estimated earnings | 437,944 | |
Earned revenue | 637,515 | |
Less: billings to date | 941,676 | |
Billings in excess of costs, net | (304,161) | |
Contract assets includes, costs and estimated earnings in excess of billings on uncompleted contracts | 4,015 | 0 |
Contract liabilities includes, billings in excess of costs and estimated earnings on uncompleted contracts | (308,175) | $ 0 |
Billings in excess of costs, net | $ (304,161) |
DEFERRED COSTS_CONTRACT ASSET_3
DEFERRED COSTS/CONTRACT ASSETS and DEFERRED REVENUE/CONTRACT LIABILITIES (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 39,484 | $ 29,512 |
Contract with customer liabilities | 841,389 | 98,425 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 35,469 | 29,512 |
Contract with customer liabilities | 533,214 | 98,425 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 4,015 | 0 |
Contract with customer liabilities | $ 308,175 | $ 0 |
DEBT (Details Narrative)
DEBT (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2019 | Jan. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Short-Term Debt [Line Items] | |||||||||
Stock issued during period value | $ 11,821,364 | ||||||||
Gain loss on debt | 623,828 | $ 548,885 | |||||||
Note One [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Proceeds from issuance of unsecured debt | $ 1,330,000 | ||||||||
Debt instrument term, description | three-year | ||||||||
Debt instrument interest rate percentage | 10% | ||||||||
Interest expense | $ 103,000 | ||||||||
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 converted instrument shares | 295,000 | 330,000 | |||||||
Stock issued during period value | $ 1,210,000 | ||||||||
Debt instrument convertible conversion price1 | $ 4 | $ 4.25 | $ 4.25 | ||||||
Convertible promissory notes | $ 117,000 | $ 117,000 | |||||||
Original issue discount on notes | 8,000 | 8,000 | |||||||
Loss on conversion of convertible notes | $ 18,000 | ||||||||
Note One [Member] | Third Year Interest [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Gain loss on debt | 520,000 | ||||||||
Note Two [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Proceeds from issuance of unsecured debt | $ 1,480,000 | ||||||||
Debt instrument interest rate percentage | 10% | ||||||||
Interest expense | 78,000 | ||||||||
Debt conversion converted instrument shares | 295,000 | ||||||||
Debt instrument convertible conversion price1 | $ 5 | $ 5 | |||||||
Convertible promissory notes | 1,313,000 | 1,313,000 | |||||||
Original issue discount on notes | $ 160,000 | $ 160,000 | |||||||
Loss on conversion of convertible notes | $ 260,000 | ||||||||
Debt instrument maturity date | Mar. 05, 2023 | ||||||||
Share issued price per share | $ 5 | $ 5 | |||||||
Paycheck Protection Program [Member] | |||||||||
Short-Term Debt [Line Items] | |||||||||
Debts instrument periodic payament | $ 620,000 | $ 550,000 |
SCHEDULE OF STOCK OPTION FAIR V
SCHEDULE OF STOCK OPTION FAIR VALUE ASSUMPTIONS (Details) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||
Weighted average expected terms (in years) | 5 years 8 months 12 days | 5 years 3 months 18 days |
Weighted average expected volatility | 236.70% | 126.60% |
Weighted average risk-free interest rate | 1.70% | 0.50% |
Expected dividend yield | 0% | 0% |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||
Options outstanding, beginning balance | 4,740,910 | 4,092,593 |
Weighted average exercise price, outstanding, beginning balance | $ 3.40 | $ 3.19 |
Weighted average remaining contractual term (Yrs), Outstanding Beginning | 8 years 6 months | 8 years 4 months 24 days |
Intrinsic value, outstanding Beginning balance | $ 7,893,467 | $ 5,553,916 |
Options, granted | 1,037,252 | 766,419 |
Weighted average exercise price, options granted | $ 9.15 | $ 4.66 |
Weighted average remaining contractual term (Yrs), options granted | 9 years 7 months 6 days | 9 years 8 months 12 days |
Intrinsic value, options granted | $ 2,578,954 | $ 383,210 |
Options, exercised | (969,775) | |
Weighted average exercise price, options exercised | $ 2.90 | |
Weighted average remaining contractual term (Yrs), options exercised | 5 years 4 months 24 days | |
Intrinsic value, options exercised | $ (8,419,947) | |
Options, dorfeited/Cancelled | (323,771) | (118,102) |
Weighted average exercise price, options forfeited/Cancelled | $ 5.65 | $ 4.28 |
Weighted average remaining contractual term (Yrs), options forfeited/Cancelled | 7 years 10 months 24 days | 8 years 10 months 24 days |
Intrinsic value, options forfeited/Cancelled | $ (1,908,018) | $ (89,956) |
Options outstanding, ending balance | 4,484,616 | 4,740,910 |
Weighted average exercise price, outstanding, Ending balance | $ 4.68 | $ 3.40 |
Weighted average remaining contractual term (Yrs), Outstanding Ending | 7 years | 8 years 6 months |
Intrinsic value, outstanding Ending balance | $ 2,404,249 | $ 7,893,467 |
Options exercisable, ending balance | 3,546,297 | 4,346,734 |
Weighted average exercise price, exercisable, Ending balance | $ 3.54 | $ 3.29 |
Weighted average remaining contractual term (Yrs), exercisable, Ending | 6 years 3 months 18 days | 8 years 4 months 24 days |
Intrinsic value, exercisable Ending balance | $ 2,404,249 | $ 7,659,692 |
SCHEDULE OF STOCK OPTION-BASED
SCHEDULE OF STOCK OPTION-BASED EXPENSE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Total | $ 2,797,298 | $ 2,945,487 |
Research and Development Expense [Member] | ||
Total | 1,470,039 | 1,381,168 |
General and Administrative Expense [Member] | ||
Total | 210,876 | 373,506 |
Selling and Marketing Expense [Member] | ||
Total | 585,380 | 477,561 |
Cost of Sales [Member] | ||
Total | 49,617 | 526,156 |
Board Option Expense [Member] | ||
Total | $ 481,386 | $ 187,096 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 02, 2021 USD ($) $ / shares shares | Nov. 30, 2021 $ / shares shares | Dec. 31, 2021 shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | |
Subsidiary, Sale of Stock [Line Items] | |||||
Proceeds from sale of common stock | $ | $ 346,010 | ||||
Stock issued during period, value, new issues | $ | 3,347,303 | ||||
Legacy acquisition obligation | $ | 1,250,000 | ||||
Stock issued during period, value, issued for services | $ | 13,578,400 | ||||
Stock issued during period value | $ | $ 11,821,364 | ||||
Stock based compensation share | 11,000 | ||||
Stock based compensation value | $ | $ 96,000 | ||||
Options granted, fair value | $ / shares | $ 8,830,000 | $ 2,940,000 | |||
2016 Equity Incentive Plan [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock issued during period shares | 10,620,000 | ||||
Unrecognized compensation expense to employees and vendors | $ | $ 6,710,000 | ||||
Weighted average period | 2 years 5 months 1 day | ||||
Stock options intrinsic value per share | $ / shares | $ 3.98 | $ 5 | |||
Twenty Sixteen Equity Incentive Plan [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock issued during period value | $ | $ 5,170,000 | ||||
Equity Option [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock issued during period shares | 560,000 | ||||
Stock issued during period value | $ | $ 1,330,000 | ||||
Common Stock [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Share-based payment arrangement, expense | 1,500,000 | ||||
Stock issued during period shares | 1,912,500 | ||||
Stock issues conversion of convertible securities | 324,150 | 332,063 | |||
Stock issued during period, shares, new issues | 388,342 | ||||
Stock issued during period, value, new issues | $ | $ 388 | ||||
Stock issued during period, value, issued for services | $ | 1,500 | ||||
Stock issued during period value | $ | $ 1,913 | ||||
Stock based compensation share | 18,553 | ||||
Common Stock [Member] | AUGGD [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock issued during period, shares, new issues | 111,000 | ||||
Stock issued during period, value, new issues | $ | $ 1,050,000 | ||||
Common Stock [Member] | S5D [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock issued during period, shares, new issues | 277,000 | ||||
Stock issued during period, value, new issues | $ | $ 2,300,000 | ||||
Common Stock [Member] | Legacy Acquisition Obligation [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock issued during period shares | 453,000 | 32,000 | |||
Common Stock [Member] | Convertible Notes Payable [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock issued during period shares | 74,000 | ||||
Investor [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Share price | $ / shares | $ 4.50 | ||||
Stock issued during period shares | 1,910,000 | 77,000 | |||
Proceeds from sale of common stock | $ | $ 1,500,000 | $ 350,000 | |||
Vendors [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Share-based payment arrangement, expense | 20,000 | 29,000 | |||
Stock issued during period, value, issued for services | $ | $ 198,000 | $ 134,000 | |||
Securities Purchase Agreement [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Share price | $ / shares | $ 10 | ||||
Sale of stock | 1,500,000 | ||||
Stock issued during period shares | 15,000,000 | ||||
Warrants price per share | 750,000 | ||||
Warrants price per share | $ / shares | $ 14.63 | ||||
Warrants to purchase shares exercised | 0.56 | ||||
Warrants and rights outstanding term description | five years | ||||
Share based compensation arrangement byShare based payment award non option equity instruments not exercised | 190,000 | ||||
Securities Purchase Agreement [Member] | Investor [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Proceeds from sale of common stock | $ | $ 13,580,000 | ||||
Valuation Technique, Option Pricing Model [Member] | Securities Purchase Agreement [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Warrants and rights outstanding term | 5 years | ||||
Fairvalue of measurement input | 146 | ||||
Valuation Technique, Option Pricing Model [Member] | Measurement Input, Risk Free Interest Rate [Member] | Securities Purchase Agreement [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Fairvalue of measurement input | 1.22 | ||||
Valuation Technique, Option Pricing Model [Member] | Measurement Input, Expected Dividend Rate [Member] | Securities Purchase Agreement [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Fairvalue of measurement input | 0 | ||||
IPO [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Share price | $ / shares | $ 7 | $ 7 | |||
Sale of stock | 1,910,000 | ||||
Proceeds from issuance of equity | $ | $ 11,820,000 | ||||
Share-based payment arrangement, expense | 87,500 | ||||
Fairvalue of adjustment of warants | $ | $ 520,000 | ||||
Shares issued for satisfaction of convertable promisary note | 324,150 | ||||
Loss on conversion of convertible notes | $ | $ 280,000 | ||||
Stock issues conversion of convertible securities | 332,000 | ||||
IPO [Member] | Common Stock [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Stock issued during period shares | 324,000 | ||||
IPO [Member] | Investor [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Share price | $ / shares | $ 7 | ||||
Proceeds from sale of common stock | $ | $ 11,820,000 | ||||
IPO [Member] | Securities Purchase Agreement [Member] | Investor [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Share price | $ / shares | $ 0.75 | ||||
IPO [Member] | Valuation Technique, Option Pricing Model [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Warrants and rights outstanding term | 5 years | ||||
Fairvalue of measurement input | 1.29 | ||||
IPO [Member] | Valuation Technique, Option Pricing Model [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Fairvalue of measurement input | 0.0087 | ||||
IPO [Member] | Valuation Technique, Option Pricing Model [Member] | Measurement Input, Expected Dividend Rate [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Fairvalue of measurement input | 0 |
SCHEDULE OF COMPUTATION OF BASI
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE (Details) - USD ($) | 5 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Net loss | $ 1,784,000 | $ (5,966,287) | $ (6,091,687) |
Weighted-average common shares outstanding for basic and diluted net loss per share | 11,731,383 | 7,259,249 | |
Basic and diluted net loss per share | $ (0.51) | $ (0.84) |
SCHEDULE OF POTENTIALLY DILUTIV
SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES (Details) - shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 5,322,116 | 5,065,060 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 4,484,616 | 4,740,910 |
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 | 324,150 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Net-operating loss carryforward | $ 7,795,509 | $ 3,923,012 |
Stock-based compensation | 392,174 | 536,265 |
Intangible asset amortization and other | 180,297 | |
Total Deferred Tax Assets | 8,367,980 | 4,459,277 |
Valuation allowance | (8,367,980) | (4,459,277) |
Deferred Tax Asset, Net |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION STATUTORY RATE (Details) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory Federal Income Tax Rate | (21.00%) | (21.00%) |
State and Local Taxes, Net of Federal Tax Benefit | (13.56%) | (13.56%) |
Stock Based Compensation Expense (ISO) | 12.78% | 13.20% |
Change in Valuation Allowance | 21.78% | 21.36% |
Income Taxes Provision (Benefit) | 0% | 0% |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Provision for income tax | $ 0 | $ 0 | |
Operating loss carry forwards | $ 22,560,000 | $ 2,880,000 | |
Operating loss carry forwards expiration date | NOLs for the periods ending June 30, 2018 and prior ($2.88 million) begin to expire in 2037 | ||
Net operating loss carry forwards no expiration | $ 19,680,000 | ||
Valuation allowance | $ 3,910,000 | $ 1,300,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | |
Independent [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Convertible notes payable current | $ 200,000 | |
Augmented Reality Investments Pty Ltd [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Equity method investment ownership percentage | 1% | |
Augmented Reality Investments Pty Ltd [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Due to related parties | $ 250,000 | |
Interest Income Expense | $ 0 |
SCHEDULE OF OPERATING LEASES MI
SCHEDULE OF OPERATING LEASES MINIMUM RENTAL COMMITMENT (Details) | Jun. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Fiscal Year Ended June 30, 2023 | $ 390,000 |
Fiscal Year Ended June 30, 2024 | 309,000 |
Fiscal Year Ended June 30, 2025 | $ 178,000 |
SCHEDULE OF CONTINGENT CONSID_2
SCHEDULE OF CONTINGENT CONSIDERATION FOR ACQUISITIONS (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Asset Acquisition [Line Items] | ||
Subtotal | $ 1,966,171 | $ 1,250,000 |
S5D, net of current portion (see Note 4) | 5,340,800 | |
Total contingent consideration for acquisitions | 7,306,971 | 1,250,000 |
S 5D Current Portion [Member] | ||
Asset Acquisition [Line Items] | ||
Subtotal | 1,397,600 | |
S5D, net of current portion (see Note 4) | 5,340,800 | |
AUGGD [Member] | ||
Asset Acquisition [Line Items] | ||
Subtotal | 568,571 | |
Kabaq 3D Technologies LLC [Member] | ||
Asset Acquisition [Line Items] | ||
Subtotal | 750,000 | |
Kreat AR LLC [Member] | ||
Asset Acquisition [Line Items] | ||
Subtotal | $ 500,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Rent expense | $ 408,000 | $ 296,000 | |
Stock issued during period, value, new issues | $ 11,821,364 | ||
Common Stock [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Stock issued during period, share, new issues | 1,912,500 | ||
Stock issued during period, value, new issues | $ 1,913 | ||
Kabaq 3D Technologies LLC [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Additional acquisition cost | $ 750,000 | ||
Kabaq 3D Technologies LLC [Member] | Equity Option [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Stock issued during period, share, new issues | 375,000 | ||
Share price | $ 2 | ||
Kreat AR LLC [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Additional acquisition cost | $ 500,000 | ||
Share price | $ 2 | ||
Kreat AR LLC [Member] | Common Stock [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Stock issued during period, share, new issues | 42,978 | ||
Stock issued during period, value, new issues | $ 430,000 | ||
Kreat AR LLC [Member] | Equity Option [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Stock issued during period, value, new issues | $ 35,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2022 | May 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Subsequent Event [Line Items] | |||||
Purchase price of acquisition | $ 3,347,303 | ||||
Common stock issued in Initial Public Offering, net | 11,821,364 | ||||
Revenue | $ 7,267,613 | $ 3,421,495 | |||
BLI Agreement [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Purchase of assets in cash | $ 3,000,000 | ||||
Number of purchase of shares | 710 | ||||
Brightline Interactive LLC [Member] | |||||
Subsequent Event [Line Items] | |||||
Revenue | $ 5,000,000 | ||||
Brightline Interactive LLC [Member] | BLI Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Purchase price of acquisition | $ 32,500,000 | ||||
Initial payment of acquisition | 8,000,000 | ||||
Purchase of assets in cash | 3,000,000 | ||||
Common stock issued in Initial Public Offering, net | $ 5,000,000 | ||||
Number of purchase of shares | 710 | ||||
Purchase price consideration | $ 24,500,000 | ||||
Payment for acquisition | $ 12,000,000 | ||||
Shares issued price per share | $ 7 |