v3.26.1
REVISIONS OF PRIOR-YEAR COMPARATIVE AMOUNTS
 9 Months Ended
Mar. 31, 2026
Equity [Abstract]  
REVISIONS OF PRIOR-YEAR COMPARATIVE AMOUNTS

NOTE 24 – REVISIONS OF PRIOR-YEAR COMPARATIVE AMOUNTS

 

During the preparation of the consolidated financial statements for the year ended June 30, 2025, management identified errors in the classification of certain share-based compensation arrangements and equity balances in the previously issued unaudited condensed consolidated financial statements for the period ended March 31, 2025. As a result, the Company has revised certain prior-year comparative amounts to correct these errors. The Company evaluated these adjustments in accordance with ASC 250-10-45-22 through 45-26 and concluded that the revision was required to correct errors in the application of ASC 718, specifically related to the classification of certain equity-related balances. Management determined that certain share-based compensation arrangements for which the service inception period had commenced, but the grant-date criteria under ASC 718 had not yet been met, were previously presented within stockholders’ equity. Under ASC 718, when the grant date has not occurred but services have begun, the related cost attribution should be recognized as a liability until the grant-date criteria are satisfied. Accordingly, the Company has revised the comparative Statement of Changes in Equity as of March 31, 2025 to reclassify the related accrued share-based compensation amounts from stockholders’ equity to current liabilities.

 

In addition, the Company adjusted the presentation of certain equity related accounts to reflect their appropriate classification in accordance with U.S. GAAP. The Company further evaluated whether the identified errors were material to the previously issued unaudited condensed financial statements in accordance with ASC 250 and Staff Accounting Bulletin No. 99. Based on this evaluation, the Company determined that the errors were not material, either individually or in the aggregate, to the prior period financial statements and did not materially impact trends in results of operations, compliance with regulatory requirements, or key financial metrics. Accordingly, the Company concluded that a revision of certain comparatives included in the current filing relating to prior period unaudited condensed financial statements (commonly referred to as a “little ‘r’ restatement”) was appropriate and has revised the prior period unaudited condensed financial statements in the current filing to correct these errors and enhance transparency.

 

 

Equity and Share-Based Compensation Presentation

 

Certain balances previously presented as common stock to be issued were combined with common stock issued and common stock to be cancelled were combined within additional paid-in capital in the unaudited condensed consolidated statements of changes in stockholders’ equity to reflect issued share capital on a consistent basis.

 

Certain share-based compensation arrangements with a non-employee for which the service inception period had not yet commenced, but for which the grant-date criteria under ASC 718 had been satisfied as of December 31, 2024, were previously presented within stockholders’ equity as deferred stock-based compensation as at December 31, 2024. Upon further evaluation, management determined that the related compensation cost should be classified as prepaid share-based compensation as at December 31, 2024 as the grant-date criteria was met as at that reporting date and the shares were committed to be issued. Accordingly, these amounts previously included as deferred stock-based compensation in stockholders’ equity as of December 31, 2024 were reclassified to prepaid share-based compensation in the consolidated balance sheet as at December 31, 2024, resulting in a corresponding change to the stockholders’ equity balance as at December 31, 2024.

 

Certain share-based compensation arrangements for which the service inception period had commenced, but for which the grant-date criteria under ASC 718 had not yet been satisfied, were previously presented within stockholders’ equity. Upon further evaluation, management determined that the related compensation cost should be classified as a current liability until the grant-date criteria are met. Accordingly, certain amounts previously included in stockholders’ equity as of July 1, 2024 (June 30, 2024) were reclassified to current liabilities in the consolidated balance sheet, resulting in a corresponding change to the opening stockholders’ equity balance.

 

The revisions described above had no impact on previously reported net loss, earnings per share, total assets, or total cash flows. However, it resulted in changes to the classification and presentation of certain line items within the consolidated statements of changes in stockholders’ equity.

 

Consolidated statements of changes in stockholders’ equity line item

 SCHEDULE OF CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                                    
   Common stock   Common stock to be    Common stock to be   Deferred stock-based  

Additional

paid-in

     
   No. of shares   Amount   issued   cancelled   compensation   capital   Total 
Balance as of July 1, 2024                                   
- As previously reported   1,222,245,276   $1,199,358   $22,887   $(375)  $-   $49,921,380   $37,591,140 
- Revisions   (898,690)  $21,988   $(22,887)  $375   $-   $(274,346)  $(274,870)
- As revised   1,221,346,586   $1,221,346   $-   $-   $-   $49,647,034   $37,316,270 
Shares issued for private placement                                   
- As previously reported   6,024,439   $6,024   $-   $-   $-   $577,976   $584,000 
- Revisions   3,277,775   $3,278   $-   $-   $-   $316,722   $320,000 
- As revised   9,302,214   $9,302   $-   $-   $-   $894,698   $904,000 
Share issued for previously committed private placement                                   
- As previously reported   -   $21,988   $(21,988)  $-   $-   $-   $- 
- Revisions   -   $(21,988)  $21,988   $-   $-   $-   $- 
- As revised   -   $-   $-   $-   $-   $-   $- 
Shares issued to service provider                                   
- As previously reported   2,302,890   $2,303   $-   $-   $-   $788,506   $790,809 
- Revisions   5,053,660   $5,053   $-   $-   $-   $879,186   $884,239 
- As revised   7,356,550   $7,356   $-   $-   $-   $1,667,692   $1,675,048 
Shares issued for previously committed issued to service provider                                   
- As previously reported   -   $397   $(397)  $-   $-   $-   $- 
- Revisions   -   $(397)  $397   $-   $-   $-   $- 
- As revised   -   $-   $-   $-   $-   $-   $- 
Shares issued for previously committed issued to employee                                   
- As previously reported   -   $502   $(502)  $-   $-   $-   $- 
- Revisions   -   $(502)  $502   $-   $-   $-   $- 
- As revised   -   $-   $-   $-   $-   $-   $- 
Shares issued to employee                                   
- As previously reported   1,518,420   $1,518   $-   $-   $-   $409,213   $410,731 
- Revisions   551,580   $552   $-   $-   $-   $(165,968)  $(165,416)
- As revised   2,070,000   $2,070   $-   $-   $-   $243,245   $245,315 
Shares to be issued for private placement                                   
- As previously reported   3,277,775   $-   $3,278   $-   $-   $316,722   $320,000 
- Revisions   (3,277,775)  $-   $(3,278)  $-   $-   $(316,722)  $(320,000 
- As revised   -   $-   $-   $-   $-   $-   $- 
Shares to be issued to service provider                                   
- As previously reported   4,656,550   $-   $4,656   $-   $(745,048)  $740,392   $- 
- Revisions   (4,656,550)  $-   $(4,656)  $-   $745,048   $(740,392)  $- 
- As revised   -   $-   $-   $-   $-   $-   $- 
Shares to be issued to employee                                   
- As previously reported   50,000   $-   $50   $-   $-   $9,230   $9,280 
- Revisions   (50,000)  $-   $(50)  $-   $-   $(9,230)  $(9,280)
- As revised   -   $-   $-   $-   $-   $-   $- 
Share based compensation to employee                                   
- As previously reported   -   $-   $-   $-   $-   $-   $- 
- Revisions   -   $-   $-   $-   $-   $92,044   $92,044 
- As revised   -   $-   $-   $-   $-   $92,044   $92,044 
Balance as of December 31, 2024                                   
- As previously reported   1,249,280,892   $1,241,296   $7,984   $(375)  $(745,048)  $53,385,101   $37,958,212 
- Revisions   -   $7,984   $(7,984)  $375   $745,048   $(218,706)  $526,717 
- As revised   1,249,280,892   $1,249,280   $-   $-   $-   $53,166,395   $38,484,929 
Shares issued for private placement                                   
- As previously reported   3,905,555   $3,906   $-   $-   $-   $386,094   $390,000 
- Revisions   183,333   $183   $-   $-   $-   $24,817   $25,000 
- As revised   4,088,888   $4,089   $-   $-   $-   $410,911   $415,000 
Share issued for previously committed private placement                                   
- As previously reported   -   $3,278   $(3,278)  $-   $-   $-   $- 
- Revisions   -   $(3,278)  $3,278   $-   $-   $-   $- 
- As revised   -   $-   $-   $-   $-   $-   $- 
Shares issued for previously committed issued to service provider                                   
- As previously reported   -   $4,656   $(4,656)  $-   $745,048   $-   $745,048 
- Revisions   -   $(4,656)  $4,656   $-   $(745,048)  $-   $(745,048)
- As revised   -   $-   $-   $-   $-   $-   $- 
Shares issued for previously committed issued to employee                                   
- As previously reported   -   $50   $(50)  $-   $-   $-   $- 
- Revisions   -   $(50)  $50   $-   $-   $-   $- 
- As revised   -   $-   $-   $-   $-   $-   $- 
Shares to be issued for private placement                                   
- As previously reported   183,333   $-   $183   $-   $-   $24,817   $25,000 
- Revisions   (183,333)  $-   $(183)  $-   $-   $(24,817)  $(25,000)
- As revised   -   $-   $-   $-   $-   $-   $- 
Share based compensation to employee                                   
- As previously reported   -   $-   $-   $-   $-   $-   $

-

 
- Revisions   -   $-   $-   $-   $-   $

92,331

   $

92,331

 
- As revised   -   $-   $-   $-   $-   $92,331   $92,331 
Balance as of March 31, 2025                                   
- As previously reported   1,253,169,780   $1,252,986   $183   $(375)  $-   $53,776,212   $37,942,163 
- Revisions   -   $183   $(183)  $375   $-   $(126,375)  $(126,000)
- As revised   1,253,169,780   $1,253,169   $-   $-   $-   $53,649,837   $37,816,163 

 

The revised presentation reflects the correction of classification errors described above, as well as related adjustments to improve the consistency and comparability of the Company’s financial statement presentation between periods.

 

In the consolidated statements of operations and comprehensive loss, the weighted average shares of common stock outstanding for the three months ended March 31, 2025 were also revised compared to the amounts previously reported in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2025.

 

In connection with the revisions, the Company also reclassified certain lease-related and stock-based compensation cash flow amounts within the consolidated statements of cash flows to conform to the current year presentation. These revisions include the correction of classification errors related to certain lease-related cash flows previously misclassified between operating and financing activities, revisions to the classification of stock-based compensation between non-employee and employee categories, and expanded supplemental cash flow disclosures, including interest paid and noncash investing and financing activities.

 

These revisions were made in accordance with ASC 842, Leases, ASC 718, Compensation-Stock Compensation, and ASC 230, Statement of Cash Flows, and did not impact the total net change in cash for the period.

 

Consolidated statements of cash flows line item  As previously reported   Revisions   As revised 
             
Stock-based compensation-nonemployee  $1,002,807   $(5,339)  $997,468 
Stock-based compensation-employee  $288,673   $5,339   $294,012 
Operating lease expense  $5,368   $21,846   $27,214 
Repayment of operating lease liabilities  $-   $(27,214)  $(27,214)
Total cash flows from operating activities  $(2,585,890)  $(5,368)  $(2,591,258)
                
Lease interest paid  $(5,368)  $5,368   $- 
Total cash flows from financing activities  $325,052   $(5,368)  $330,420 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:               
Cash paid for interest  $-   $16,247   $16,247 
SUPPLEMENTAL NONCASH DISCLOSURE:               
Share issuance for employee compensation  $-   $294,011   $294,011 
Promissory note to related party settled by Company’s  common stock  $-   $675,888   $675,888 

 

 

During the preparation of the condensed consolidated financial statements for the nine-months ended March 31, 2026, management restated the weighted average number of shares (basic and diluted) for the three-months ended March 31, 2025.

 

Consolidated statements of operations   As previously reported     Revisions     As revised  
                   
Weighted average common stock outstanding                        
- Basic and diluted     1,238,271,472       12,553,853       1,250,825,325