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Basis of Presentation and Organization
 9 Months Ended 12 Months Ended
Mar. 31, 2014
Jun. 30, 2013
Basis of Presentation and Organization [Abstract]    
BASIS OF PRESENTATION AND ORGANIZATION
Note 1 – BASIS OF PRESENTATION AND ORGANIZATION
 
Basis of Presentation
The accompanying condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“US GAAP”) and with the instructions to Form 10-Q.
 
Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to U.S. GAAP rules and regulations for presentation of interim financial information. Therefore, the unaudited condensed interim consolidated financial statements should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Annual Report on the Form 10-K/A for the fiscal years ended June 30, 2013 and 2012.  Current and future financial statements may not be directly comparable to the Company’s historical financial statements.  However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended June 30, 2013 included in the Company’s Annual Report on Form 10-K/A filed with the Securities and Exchange Commission. The unaudited consolidated financial statements should be read in conjunction with the financial statements included in the Form10-K/A.  In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the nine months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending June 30, 2014.
Note 1 – BASIS OF PRESENTATION AND ORGANIZATION (RESTATED)
 
Basis of Presentation
 
Source Financial, Inc., formerly known as The Wiki Group, Inc., (the “Company” or “Source”) was incorporated under the laws of the State of Delaware on June 24, 1988 as Windsor Capital Corp.  Between March 2001 and January 2008 the Company amended and restated its Articles of Incorporation and changed its corporate name to Energy Control Technology, Inc., 5Fifty5.com, Inc., Swap-A-Debt, Inc., WikiLoan, Inc. and finally Wiki Group, Inc. on March 12, 2012.
 
Moneytech Limited (“Moneytech”) was incorporated under the laws of Australia on September 9, 2003, and (through its wholly owned subsidiaries Moneytech Finance Pty Ltd, mPayments Pty Ltd., Moneytech POS Pty Ltd. and Moneytech Services Pty Ltd.) offers working capital, trade and debtor finance solutions, to small and medium sized businesses in Australia.
 
On June 30, 2013, Source acquired Moneytech and it’s wholly owned subsidiaries, Moneytech Finance Pty. Ltd., mPayments Pty. Ltd., Moneytech POS Pty. Ltd. and Moneytech Services Pty. Ltd.  Under the terms of the Exchange Agreement, all stockholders of Moneytech received a total of 5,300,000 shares of voting common stock of Source in exchange for all outstanding shares of Moneytech. In addition, pursuant to a separate agreement, the President of Moneytech received 5,000 shares of Preferred Series B Stock.  Under accounting principles generally accepted in the United States, the share exchange is considered to be a capital transaction in substance, rather than a business combination.  That is, the share exchange is equivalent to the issuance of stock by Moneytech for the net monetary assets of Source accompanied by a recapitalization, and is accounted for as a change in capital structure.  Accordingly, the accounting for the share exchange will be identical to that resulting from a reverse acquisition, except no goodwill will be recorded.  Under share reverse takeover accounting, the post reverse acquisition comparative historical financial statements of the legal acquirer, Source are those of the legal acquiree, Moneytech, which is considered to be the accounting acquirer.  Share and per share amounts stated have been retroactively adjusted to reflect the merger.
 
Organization
 
Moneytech delivers its product offerings through ‘The Moneytech Exchange’, which is a real-time core banking platform, developed in-house and which continues to be upgraded with the support of the Australian Federal Government’s Research and Development program.
 
The Moneytech Exchange serves as the backbone of the business in Australia by providing internet banking style access to Moneytech’s customers and back-office systems to Moneytech staff.
 
The Company offers a range of innovative financial products and services to businesses and consumers in Australia and the United States through its principal operating subsidiaries, Moneytech and WikiTechnologies, Inc. The Company recently formed a new corporation in the United States, Moneytech USA, Inc.
 
When used in these notes, the terms "Company," "we," "our," or "us" mean Source Financial, Inc. and its subsidiaries.
 
Restatements
 
Subsequent to the issuance of the Company's financial statements for the fiscal year ended June 30, 2013, the Company determined that certain shares that had been authorized for issuance prior to the share exchange on June 30, 2013, and presentation of the stockholders’ equity on the consolidated balance sheet had not been properly accounted for in the Company’s financial statements.  Specifically, the number of shares outstanding as of June 30, 2013 was 10,300,000, of which 338,368 were to be issued. The Company also determined that the presentation of certain transactions in the financial statements had not been accounted for properly.  Specifically, the amount of the value available on cards held by consumers in certain gift card and similar programs had been improperly recognized in revenue and cost of revenues.  Also, the provision for income tax and deferred tax was incorrectly calculated.  The Company also used this opportunity to realign operating expenses and cost of revenue to conform to future financials filed.
 
The shares to be issued were for investor relations and consulting services received by Wiki Technology prior to the reverse merger.  The 179,369 shares to be issued were for investor relations and were recorded at $2.02 per share and expensed.  The 159,000 shares to be issued were for consulting services and were recorded at $1.25 per share and expensed.  These services and expenses were recorded prior to the reverse merger.
 
The Company has restated the consolidated balance sheet, consolidated statement of operations and comprehensive (loss) income, consolidated statement of stockholders’ equity, consolidated statement of cash flows for the fiscal years ended June 30, 2013 and 2012.
 
The effects of these restatements and reclassifications are as follows:
 
BALANCE SHEETS
 
Reported
  
Adjustments
  
Restated
  
Reported
  
Adjustments
  
Restated
 
  
June 30,
2012
  
June 30,
2012
  
June 30,
2012
  
June 30,
2013
  
June 30,
2013
  
June 30,
2013
 
ASSETS
                  
CURRENT ASSETS
                  
TOTAL CURRENT ASSETS
  
33,919,346
   
-
   
33,919,346
   
35,974,537
   
-
   
35,974,537
 
                         
NON-CURRENT ASSETS
                        
Intangible assets
  
3,467,872
   
-
   
3,467,872
   
3,512,767
   
-
   
3,512,767
 
Deferred tax asset
  
2,155,244
   
(114,156
)
  
2,041,089
   
988,860
   
141,594
   
1,130,454
 
Property, plant and equipment
  
684,786
   
-
   
684,786
   
578,136
   
-
   
578,136
 
Other assets
  
-
   
-
   
-
   
95,973
   
-
   
95,973
 
Goodwill
  
-
   
-
   
-
   
69,057
   
-
   
69,057
 
TOTAL NON-CURRENT ASSETS
  
6,307,902
   
(114,156
)
  
6,193,747
   
5,244,793
   
141,594
   
5,386,387
 
                         
TOTAL ASSETS
 
$
40,227,248
  
$
(114,156
)
 
$
40,113,093
  
$
41,219,330
  
$
141,594
  
$
41,360,924
 
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
Trade and other payables
  
6,597,747
   
(1
)
  
6,597,746
   
5,250,399
   
-
   
5,250,399
 
Wholesale loan facility
  
24,688,865
   
-
   
24,688,865
   
25,669,388
   
-
   
25,669,388
 
Cash reserve
  
703,003
   
-
   
703,003
   
2,731,094
   
-
   
2,731,094
 
TOTAL CURRENT LIABILITIES
  
31,989,615
   
(1
)
  
31,989,614
   
33,650,881
   
-
   
33,650,881
 
                         
NON-CURRENT LIABILITIES
                        
TOTAL NON-CURRENT LIABILITIES
  
218,574
   
-
   
218,574
   
45,665
   
-
   
45,665
 
                         
TOTAL LIABILITIES
  
32,208,189
   
(1
)
  
32,208,188
   
33,696,546
   
-
   
33,696,546
 
                         
EQUITY
                        
Preferred stock
  
50
   
-
   
50
   
50
   
-
   
50
 
Common stock
  
530,000
   
-
   
530,000
   
996,164
   
(1
)
  
996,163
 
Common stock to be issued
  
-
   
-
   
-
   
-
   
33,837
   
33,837
 
Additional paid-in capital
  
14,639,149
   
1
   
14,639,150
   
14,496,411
   
(33,836
)
  
14,462,575
 
Other accumulated comprehensive gain (loss)
  
(244,289
)
  
(8,769
)
  
(253,058
)
  
(1,052,144
)
  
(27,618
)
  
(1,079,762
)
Accumulated deficit
  
(6,905,851
)
  
(105,386
)
  
(7,011,237
)
  
(6,917,697
)
  
169,212
   
(6,748,485
)
TOTAL EQUITY
  
8,019,059
   
(114,154
)
  
7,904,905
   
7,522,784
   
141,594
   
7,664,378
 
                         
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
40,227,248
  
$
(114,155
)
 
$
40,113,093
  
$
41,219,330
  
$
141,594
  
$
41,360,924
 
 
STATEMENTS OF OPERATIONS
 
Reported
  
Adjustments
  
Restated
  
Reported
  
Adjustments
  
Restated
 
  
June 30,
2012
  
June, 30
2012
  
June, 30
2012
  
June 30,
2013
  
June 30,
2013
  
June 30,
2013
 
Revenue
 
$
4,171,622
  
$
-
  
$
4,171,622
  
$
6,098,374
  
$
(793,244
)
 
$
5,305,130
 
Cost of revenue
  
2,622,383
   
92,844
   
2,715,227
   
3,700,918
   
(699,345
)
  
3,001,573
 
Gross profit
  
1,549,239
   
(92,844
)
  
1,456,395
   
2,397,456
   
(93,899
)
  
2,303,557
 
                         
Operating expenses
                        
Compensation expenses
  
807,671
   
(960
)
  
806,711
   
859,754
   
(129,486
)
  
730,268
 
Research and development expense
  
199,144
   
-
   
199,144
   
472,229
   
-
   
472,229
 
Bad debt expenses
  
78,038
   
-
   
78,038
   
393,774
   
-
   
393,774
 
Occupancy expenses
  
254,145
   
(33,145
)
  
221,000
   
276,615
   
(22,483
)
  
254,132
 
Depreciation expense
  
129,246
   
(92,844
)
  
36,402
   
169,743
   
(93,899
)
  
75,844
 
General and administration expenses
  
207,629
   
19,307
   
226,936
   
99,251
   
151,969
   
251,220
 
Total operating expenses
  
1,675,873
   
(107,642
)
  
1,568,231
   
2,271,366
   
(93,899
)
  
2,177,467
 
(loss) Income from operations
  
(126,634
)
  
14,798
   
(111,836
)
  
126,090
   -   - 
                         
Other income / (expense)
                        
Interest income
  
109,899
   
-
   
109,899
   
114,309
   
-
   
114,309
 
Research and development grant
  
302,876
   
-
   
302,876
   
526,962
   
-
   
526,962
 
Other (expense) income
  
-
   
(14,797
)
  
(14,797
)
  
(182,566
)
  
-
   
(182,566
)
Finance costs
  
(28,555
)
  
-
   
(28,555
)
  
(16,797
)
  
-
   
(16,797
)
Total other income
  
384,220
   
(14,797
)
  
369,423
   
441,908
   
-
   
441,908
 
(Loss) income from operations before income taxes
  
257,586
   
1
   
257,587
   
567,998
   
-
   
567,998
 
Income tax expense
  
-
   
179,647
   
179,647
   
579,844
   
(274,598
)
  
305,246
 
Net (loss) income
  
257,586
   
(179,646
)
  
77,940
   
(11,846
)
  
274,598
   
262,752
 
Other comprehensive income
  
(253,444
)
  
164
   
(253,280
)
  
(807,855
)
  
(18,849
)
  
(826,704
)
Comprehensive (loss) income
 
$
4,142
  
$
(179,482
)
 
$
(175,340
)
 
$
(819,701
)
 
$
255,749
  
$
(563,952
)
                         
Net income (loss) per share:
                        
Basic
 
$
0.049
  
$
(0.034
)
 
$
0.015
  
$
(0.002
)
 
$
0.052
  
$
0.049
 
Diluted
 
$
0.049
  
$
(0.034
)
 
$
0.015
  
$
(0.002
)
 
$
0.052
  
$
0.049
 
  
STATEMENTS OF CASH FLOWS
 
Reported
  
Adjustments
  
Restated
  
Reported
  
Adjustments
  
Restated
 
  
June 30,
2012
  
June 30,
2012
  
June 30,
2012
  
June 30,
2013
  
June 30,
2013
  
June 30,
2013
 
Net income (loss)
 
$
257,586
  
$
(179,646
)
 
$
77,940
  
$
(11,846
)
 
$
274,598
  
$
262,752
 
Adjustments to reconcile net loss to net cash used in operating activities:
                        
                         
Depreciation & amortization
  
594,011
   
-
   
594,011
   
697,017
   
-
   
697,017
 
(Increase) / decrease in assets:
                        
Trade receivables
  
(7,765,220
)
  
-
   
(7,765,220
)
  
(3,555,934
)
  
-
   
(3,555,934
)
Inventories
  
3,440
   
-
   
3,440
   
(120,644
)
  
-
   
(120,644
)
Deferred tax assets
  
-
   
179,646
   
179,646
   
579,844
   
(274,598
)
  
305,246
 
Other assets
  
(862,462
)
  
-
   
(862,462
)
  
324,906
   
-
   
324,906
 
Increase/ (decrease) in current liabilities:
                        
Trade payables
  
3,737,665
   
-
   
3,737,665
   
(769,094
)
  
-
   
(769,094
)
Net cash used in operating activities
  
(4,034,980
)
  
-
   
(4,034,980
)
  
(2,855,751
)
  
-
   
(2,855,751
)
                         
CASH FLOWS FROM INVESTING ACTIVITIES
                        
Net cash used in investing activities
  
(790,967
)
  
-
   
(790,967
)
  
(824,747
)
  
-
   
(824,747
)
                         
CASH FLOWS FROM FINANCING
                        
ACTIVITIES
                        
Net cash provided by financing activities
  
7,751,988
   
-
   
7,751,988
   
6,096,650
   
-
   
6,096,650
 
                         
Net cash provided by operations
  
2,926,041
   
-
   
2,926,041
   
2,416,152
   
-
   
2,416,152
 
                         
Effect of exchange rate changes on cash and cash equivalents
  
(163,975
)
  
-
   
(163,975
)
  
(827,350
)
  
-
   
(827,350
)
Net increase in cash and cash equivalents
  
2,762,066
   
-
   
2,762,066
   
1,588,802
   
-
   
1,588,802
 
Cash and cash equivalents at the beginning of the period
  
2,854,959
   
-
   
2,854,959
   
5,617,025
   
-
   
5,617,025
 
                         
Cash and cash equivalents at the end of the period
  
5,617,025
   
-
   
5,617,025
   
7,205,827
   
-
   
7,205,827
 
                         
SUPPLEMENTAL DISCLOSURES:
                        
Cash paid during the year for:
                        
Income tax payments
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Interest payments
 
$
1,711,920
  
$
-
  
$
1,711,920
  
$
1,905,471
  
$
-
  
$
1,905,471