Note 1 - Revision to Previously Issued Consolidated Financial Statements

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Error Correction [Text Block]

NOTE 1. IMMATERIAL ADJUSTMENT TO PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

In connection with the preparation of its Consolidated Financial Statements for the fiscal year ended June 30, 2024, the Company determined that its previously issued Consolidated Financial Statements as of and for the fiscal year ended June 30, 2023, contained an error as summarized below. Based on management’s evaluation of the accounting error under the SEC Staff’s Accounting Bulletins Nos. 99 (“SAB 99”) and 108 (“SAB 108”) and interpretations thereof, the Company concluded the error is not material, on an individual or aggregate basis, to the Company’s previously reported financial statements. The Company has corrected this accounting error in the accompanying Consolidated Financial Statements as of and for the fiscal year ended June 30, 2023.
 
The Company did not record certain liabilities as required by FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (codified under ASC 740-10) (“FIN 48”) as of June 30, 2022. The error was corrected in the Company’s Consolidated Financial Statements as of and for the year ended June 30, 2023, through retained earnings as of July 1, 2022. The impact of the correction on the Company’s previously issued Consolidated Financial Statements, as of and for the year ended June 30, 2023, is as follows:

● On the Consolidated Balance Sheet as of June 30, 2023, the reserve for uncertain tax positions increased by $175,000, and retained earnings decreased by $175,000.

● On the Consolidated Statement of Shareholders' Equity as of June 30, 2023, the beginning balance of retained earnings decreased by $175,000, and the beginning balance of total shareholders' equity decreased by $175,000.

In addition, the impacted footnote disclosures have also been revised to reflect the error correction.