RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

9 Months Ended

Jun. 30, 2015

Restatement Of Previously Issued Financial Statements [Abstract]

Restatement Of Previously Issued Financial Statements [Text Block]

NOTE 10: RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

Our previously issued financial statements as of June 30, 2015 and for the nine and three months then ended, contained the following disclosure:

“An annual impairment review of our goodwill and other acquisition-related intangible assets, utilizing the assistance of a third-party valuation services firm, will still be performed as part of preparing our September 30, 2015 financial statements. Any material difference between the results of that impairment review as of September 30, 2015 and the interim impairment review performed by management as of June 30, 2015, as described above, will be evaluated with respect to whether a modification of the June 30, 2015 results is required, although management does not currently have reason to expect any such modification will be required.”

Notwithstanding the above expectation, the annual impairment review of our goodwill and other acquisition-related intangible assets performed as part of preparing our September 30, 2015 financial statements, utilizing the assistance of a third-party valuation services firm, indicated that the impairment loss on goodwill and other intangible assets, as presented in our previously issued financial statements as of June 30, 2015 and for the nine and three months then ended, was materially understated. Accordingly, as provided for in the above disclosure made in our previously issued financial statements, these amended and restated financial statements as of June 30, 2015, and for the nine and three months then ended, are being presented to reflect the impact of a modification of the previously reported impairment loss on goodwill and other intangible assets.

The following table compares the restated amounts to the previously reported amounts for affected items within our previously issued consolidated statements of operations for the nine and three months ended June 30, 2015:

	For the nine months ended  June 30, 2015				For the three months ended  June 30, 2015
	As Restated		Previous		As Restated		Previous
Total revenue	$	12,394,852	$	12,394,852	$	4,072,998	$	4,072,998
Total costs of revenue		3,401,001		3,401,001		1,138,199		1,138,199
Gross margin		8,993,851		8,993,851		2,934,799		2,934,799
General and administrative expenses		8,574,416		8,574,416		2,911,961		2,911,961
Impairment loss on goodwill and other intangible assets		5,598,021		2,400,000		5,598,021		2,400,000
Depreciation and amortization		549,287		549,287		167,881		167,881
Total operating expenses		14,721,724		11,523,703		8,677,863		5,479,842
Loss from operations		(5,727,873)		(2,529,852)		(5,743,064)		(2,545,043)
Other expense, net		(1,387,224)		(1,387,224)		(368,661)		(368,661)
Net loss	$	(7,115,097)	$	(3,917,076)	$	(6,111,725)	$	(2,913,704)

The following table compares the restated amounts to the previously reported amounts for affected items within our previously issued consolidated balance sheet as of June 30, 2015:

	As Restated		Previous
ASSETS
Total current assets		2,717,694		2,717,694
PROPERTY AND EQUIPMENT, net		1,598,064		1,598,064
INTANGIBLE ASSETS, net		-		346,731
GOODWILL, net		3,207,314		6,058,604
OTHER NON-CURRENT ASSETS		234,695		234,695
Total assets	$	7,757,767	$	10,955,788
LIABILITIES AND EQUITY
Total liabilities		9,499,963		9,499,963
Total Onstream Media stockholders’  (deficit) equity		(2,742,196)		455,825
Noncontrolling owners’ interest in  Variable Interest Entity		1,000,000		1,000,000
Total (deficit) equity		(1,742,196)		1,455,825
Total liabilities and equity	$	7,757,767	$	10,955,788