2022 Q1 Form 10-K Financial Statement

#000121390022016675 Filed on March 31, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2021 Q4 2021
Revenue $6.951M $2.400M $20.68M
YoY Change 73.16% -41.61% 64.52%
Cost Of Revenue $2.204M $2.780M $8.119M
YoY Change 51.54% 98.54% 30.75%
Gross Profit $4.747M $3.849M $12.57M
YoY Change 85.45% 42.03% 97.46%
Gross Profit Margin 68.3% 160.38% 60.75%
Selling, General & Admin $5.807M $5.659M $19.53M
YoY Change 61.79% 48.93% 2.18%
% of Gross Profit 122.32% 147.04% 155.43%
Research & Development $2.105M $1.754M $6.272M
YoY Change 47.84% 24.41% 95.61%
% of Gross Profit 44.35% 45.57% 49.91%
Depreciation & Amortization $1.993M $2.130M $127.7K
YoY Change 89.33% 153.54% -90.29%
% of Gross Profit 41.99% 55.33% 1.02%
Operating Expenses $25.38M $9.543M $45.92M
YoY Change 318.47% 58.0% 94.29%
Operating Profit -$20.64M -$5.694M -$33.36M
YoY Change 488.61% 71.0% 93.12%
Interest Expense -$740.00 $406.3K -$1.531M
YoY Change -100.1% -121.05% -1077.48%
% of Operating Profit
Other Income/Expense, Net -$1.416M $186.2K -$228.1K
YoY Change -51.87% -410.3% -107.91%
Pretax Income -$22.05M -$19.49M -$33.58M
YoY Change 242.02% 59.71% 133.42%
Income Tax -$99.44K -$2.273M -$2.262M
% Of Pretax Income
Net Earnings -$21.95M $400.0K -$31.33M
YoY Change 239.95% -103.27% 130.83%
Net Earnings / Revenue -315.83% 16.67% -151.46%
Basic Earnings Per Share -$24.44
Diluted Earnings Per Share -$694.6K -$580.9K -$1.222M
COMMON SHARES
Basic Shares Outstanding 32.05M shares 30.74M shares 1.282M shares
Diluted Shares Outstanding 1.580M shares

Balance Sheet

Concept 2022 Q1 2021 Q4 2021
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.688M $13.93M $13.93M
YoY Change -37.22% -21.89% -21.89%
Cash & Equivalents $9.688M $13.93M
Short-Term Investments
Other Short-Term Assets $2.453M $2.385M $2.385M
YoY Change 20.23% -19.42% 1.49%
Inventory
Prepaid Expenses $2.492M $2.384M
Receivables $2.579M $1.404M $1.404M
Other Receivables $547.7K $507.0K $507.0K
Total Short-Term Assets $15.27M $18.23M $18.23M
YoY Change -23.32% -19.17% -19.16%
LONG-TERM ASSETS
Property, Plant & Equipment $159.2K $153.2K $153.2K
YoY Change -86.03% -87.17% -87.13%
Goodwill $29.96M $46.94M
YoY Change -28.44% 12.1%
Intangibles $21.61M
YoY Change 192.47%
Long-Term Investments $226.1K $226.1K $226.1K
YoY Change -1.7% -3.24% -1.7%
Other Assets $9.700K $9.700K $9.700K
YoY Change
Total Long-Term Assets $59.08M $76.25M $76.25M
YoY Change 8.56% 39.62% 39.61%
TOTAL ASSETS
Total Short-Term Assets $15.27M $18.23M $18.23M
Total Long-Term Assets $59.08M $76.25M $76.25M
Total Assets $74.35M $94.48M $94.48M
YoY Change 0.02% 22.44% 22.44%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.066M $1.943M $1.943M
YoY Change 518.34% 278.39% 281.07%
Accrued Expenses $3.208M $3.439M $3.439M
YoY Change 25.31% 28.8%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $13.20M $13.20M $13.20M
YoY Change 50.34% 12.75% 12.72%
Total Short-Term Liabilities $30.38M $29.17M $29.17M
YoY Change 126.11% 81.73% 85.33%
LONG-TERM LIABILITIES
Long-Term Debt $2.137M $4.105M $4.105M
YoY Change 89.12% 5.39% 5.26%
Other Long-Term Liabilities $486.2K $582.7K $582.7K
YoY Change
Total Long-Term Liabilities $2.137M $4.105M $4.688M
YoY Change 89.12% 5.39% 20.2%
TOTAL LIABILITIES
Total Short-Term Liabilities $30.38M $29.17M $29.17M
Total Long-Term Liabilities $2.137M $4.105M $4.688M
Total Liabilities $33.57M $34.53M $34.53M
YoY Change 130.49% 73.13% 75.83%
SHAREHOLDERS EQUITY
Retained Earnings -$110.5M -$88.51M
YoY Change 73.58% 54.79%
Common Stock $148.8M $146.0M
YoY Change 34.14% 55.21%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $40.78M $59.95M $59.95M
YoY Change
Total Liabilities & Shareholders Equity $74.35M $94.48M $94.48M
YoY Change 0.02% 22.44% 22.44%

Cashflow Statement

Concept 2022 Q1 2021 Q4 2021
OPERATING ACTIVITIES
Net Income -$21.95M $400.0K -$31.33M
YoY Change 239.95% -103.27% 130.83%
Depreciation, Depletion And Amortization $1.993M $2.130M $127.7K
YoY Change 89.33% 153.54% -90.29%
Cash From Operating Activities -$3.585M -$3.090M -$8.168M
YoY Change 160.98% -31.78% -43.07%
INVESTING ACTIVITIES
Capital Expenditures -$647.0K -$2.101M -$5.466M
YoY Change -7.57% 72.17% 193.9%
Acquisitions $5.019M
YoY Change 5556.66%
Other Investing Activities -$5.019M -$5.019M
YoY Change 2289.8% -4.95%
Cash From Investing Activities -$647.0K -$7.119M -$10.49M
YoY Change -8.18% 394.38% 191.41%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net $4.571M
YoY Change
Cash From Financing Activities -$5.615K 14.51M $14.74M
YoY Change -98.32% 52.1% -27.17%
NET CHANGE
Cash From Operating Activities -$3.585M -3.090M -$8.168M
Cash From Investing Activities -$647.0K -7.119M -$10.49M
Cash From Financing Activities -$5.615K 14.51M $14.74M
Net Change In Cash -$4.247M 4.301M -$3.917M
YoY Change 75.92% 20.47% -271.15%
FREE CASH FLOW
Cash From Operating Activities -$3.585M -$3.090M -$8.168M
Capital Expenditures -$647.0K -$2.101M -$5.466M
Free Cash Flow -$2.938M -$989.9K -$2.701M
YoY Change 336.08% -70.09% -78.37%

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CY2021Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Receivables
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables
1041912 USD
CY2020Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Receivables
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables
917205 USD
CY2020Q2 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Receivables
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables
77505 USD
CY2021Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Prepaid Expense And Other Assets
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets
408973 USD
CY2020Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Prepaid Expense And Other Assets
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets
596233 USD
CY2020Q2 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Prepaid Expense And Other Assets
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets
27860 USD
CY2021Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Property Plant And Equipment
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment
93365 USD
CY2020Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Property Plant And Equipment
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment
1326996 USD
CY2020Q2 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Property Plant And Equipment
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment
2410 USD
CY2021Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangible Assets Other Than Goodwill
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
16933000 USD
CY2020Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangible Assets Other Than Goodwill
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
3795000 USD
CY2020Q2 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangible Assets Other Than Goodwill
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
8010000 USD
CY2021Q4 kern Acquisition Of Goodwill
AcquisitionOfGoodwill
19451464 USD
CY2020Q4 kern Acquisition Of Goodwill
AcquisitionOfGoodwill
25805615 USD
CY2020Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deferred Tax Liabilities
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilities
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CY2020Q2 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deferred Tax Liabilities
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilities
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CY2021Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Deferred Revenue
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue
4301514 USD
CY2020Q2 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Deferred Revenue
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredRevenue
31220 USD
CY2021Q4 kern Contingent Consideration
ContingentConsideration
6300000 USD
CY2020Q4 kern Contingent Consideration
ContingentConsideration
604000 USD
CY2020Q2 kern Contingent Consideration
ContingentConsideration
1387000 USD
CY2021 us-gaap Nature Of Operations
NatureOfOperations
<p style="margin: 0pt; text-align: justify;"><span style="font-weight: bold;"><span>Note 1</span><span> </span></span><span><span>-</span></span><span style="font-weight: bold; font-family: 'times new roman', times; font-size: 10pt;"><span>Description of Bu<span>sines</span>s, Liquidity, and Capital</span> <span>Resources</span></span></p> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;"> </span></p> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt; font-style: italic;">Description of Business</span></p> <p style="margin: 0pt; text-align: justify;"><span style="font-family: 'Times New Roman'; font-size: 10pt;"> </span></p> <p style="color: #000000; font: 10pt / 1.2 'Times New Roman', Times, serif; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt; text-align: justify; text-indent: 32pt;"><span style="font-family: 'times new roman', times; line-height: inherit;">Akerna Corp., herein referred to as we, us, our or Akerna, through our wholly-owned subsidiaries MJ Freeway, LLC, or MJF, Trellis Solutions, Inc., or Trellis, <span style="font-size: 10pt; font-family: 'Times New Roman', serif; color: #000000; position: relative; top: 0.5pt; line-height: inherit;">Ample Organics, Inc, or Ample, </span>solo sciences, inc., or Solo, Viridian Sciences Inc., or Viridian, and The NAV People, Inc. d.b.a. 365 Cannabis, or 365 Cannabis, provides enterprise software solutions that enable regulatory compliance and inventory management. Our proprietary, broad and growing suite of solutions are adaptable for industries in which interfacing with government regulatory agencies for compliance purposes is required, or where the tracking of organic materials from seed or plant to end products is desired. We develop products intended to assist states in monitoring licensed businesses’ compliance with state regulations and to help state-licensed businesses operate in compliance with such law. We provide <span style="color: #000000; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;">o<span style="font-size: 10pt; line-height: inherit;">ur commercial software platform, MJ Platform®, Trellis®, Ample, Viridian and 365 Cannabis to state-licensed businesses, and </span></span><span style="font-size: 10pt; line-height: inherit;">our regulatory software platform, Leaf Data Systems®, to state government regulatory agencies.</span> <span style="font-size: 10pt; color: #000000; position: relative; top: 0.5pt; line-height: inherit;">Through Solo, we provide an innovative, next-generation solution for state and national governments to securely track product and waste throughout the supply chain with solo*TAG</span><sup><span style="font-size: 6.5pt; color: #000000; position: relative; top: 0.5pt; line-height: inherit;">™</span></sup><span style="font-size: 10pt; color: #000000; position: relative; top: 0.5pt; line-height: inherit;">. </span>The integration of MJ Platform® and solo*CODE<sup>™ </sup>results in technology for consumers and brands that brings a consumer-facing mark designed to highlight the authenticity and signify transparency. Our Viridian and 365 Cannabis offerings are considered enterprise offerings and all other solutions are considered non-enterprise offerings that meet the needs of our small and medium business customers.  </span></p> <p style="color: #000000; font: 10pt / 1.2 'Times New Roman', Times, serif; letter-spacing: normal; orphans: 2; text-indent: 32pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt; text-align: justify;"> </p> <p style="color: #000000; font: 10pt / 1.2 'Times New Roman', Times, serif; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt; text-align: justify; text-indent: 32pt;"><span style="font-family: 'times new roman', times; line-height: inherit;">We consult with clients on a wide range of areas to help them successfully maintain compliance with state laws and regulations. We provide project-focused consulting services to clients who are initiating or expanding their cannabis business operations or are interested in data consulting engagements with respect to the legal cannabis industry. Our advisory engagements include service offerings focused on compliance requirement assessments, readiness and best practices, compliance monitoring systems, application processes, inspection readiness, and business plan and compliance reviews. We typically provide our consulting services to clients in emerging markets that are seeking consultation on newly introduced licensing regimes and assistance with the regulatory compliant build-out of operations. </span><br/></p> <p style="color: #000000; font: 10pt 'Times New Roman', Times, serif; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt; text-align: justify; text-indent: 32pt;"><br/></p> <p style="margin: 0pt; line-height: 1.2;"><span style="font-family: 'Times New Roman'; font-size: 10pt; font-style: italic; line-height: inherit;">Going Concern and Management's Liquidity Plans</span></p> <p style="margin: 0pt; text-align: justify; line-height: 1.1;"><span style="font-family: 'Times New Roman'; font-size: 10pt; line-height: inherit;"> </span></p> <p style="margin: 0pt; color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; text-align: justify; text-indent: 32pt; line-height: 1.2;"><span style="font-family: 'times new roman', times; font-size: 10pt;">In accordance with the Financial Accounting Standards Board’s (“FASB”) standard on going concern, Accounting Standard Update, or ASU No. 2014-15, The Company assesses going concern uncertainty in its consolidated financial statements to determine if it has sufficient cash, cash equivalents and working capital on hand, including marketable equity securities, and any available borrowings on loans, to operate for a period of at least one year from the date the consolidated financial statements are issued, which is referred to as the “look-forward period” as defined by ASU No. 2014-15. As part of this assessment, based on conditions that are known and reasonably knowable to The Company, it will consider various scenarios, forecasts, projections, estimates and will make certain key assumptions, including the timing and nature of projected cash expenditures or programs, and its ability to delay or curtail expenditures or programs, if necessary, among other factors. Based on this assessment, as necessary or applicable, The Company makes certain assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent The Company deems probable those implementations can be achieved and it has the proper authority to execute them within the look-forward period in accordance with ASU No. 2014-15.</span></p> <p style="margin: 0pt; color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; text-align: justify; text-indent: 32pt; line-height: 1.2;"><br/></p> <p style="margin: 0pt; color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; text-align: justify; text-indent: 32pt; line-height: 1.2;"><span style="font-family: 'times new roman', times; font-size: 10pt;"><span style="color: #000000; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 42.6667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-family: 'times new roman', times; line-height: inherit;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 42.6667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">The accompanying consolidated financial statements have been prepared on the basis that we will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business.<span>  However, since</span></span> our inception we have incurred recurring operating losses, used cash from operations, and relied on capital raising transactions to continue ongoing operations. </span><span style="color: #000000; font-family: 'time new roman'; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 42.6667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; line-height: inherit;">During the year ended<span> </span>December 31, 2021, six months ended December 31, 2020, and year ended June 30, 2020, we incurred a loss from operations of $33.4<span> </span>million,<span> </span><span style="color: #000000; font-family: 'time new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 42.6667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$15.7</span><span style="color: #000000; font-family: 'time new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 42.6667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"> million</span>, and<span> </span><span style="color: #000000; font-family: 'time new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 42.6667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$17.3</span><span style="color: #000000; font-family: 'time new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 42.6667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"> million, respectively, and<span><span> </span>used cash in operations of</span></span><span> $8.2<span> million, $</span>8.7 million, and $14.3 million, res</span>pectively. At December 31, 2021, the Company had a working capital<span> </span>defici<span>t of $10.9</span><span><span> </span>million with $</span><span>13.9</span><span> million in</span><span> </span>cash available to fund future operations. <span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 42.6667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">These factors raise substantial doubt, as defined by generally accepted accounting principles in the United States of America ("GAAP"), about the ability of the company to continue to operate as a going concern for the<span> </span>twelve<span> </span>months following the issuance of these consolidated financial statements. These consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. </span></span><br/></span></p> <p style="margin: 0pt; color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; text-align: justify; text-indent: 32pt; line-height: 1.2;"><br/></p> <p style="margin: 0pt; color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; text-align: justify; text-indent: 32pt; line-height: 1.2;"><span style="font-family: 'times new roman', times; font-size: 10pt;">On July 23, 2021, we entered into an Equity Distribution Agreement with Oppenheimer &amp; Co.<span> </span>Inc. and A.G.P./Alliance Global Partners ("ATM Program"). Pursuant to the terms of the ATM Program, we may offer and sell from time to time, up to $25<span> </span>million of shares of our common stock. As of December 31, 2021, we have raised gross proceeds of $1.9<span> </span>million through the issuance of<span> </span>556,388<span> </span>shares through the ATM program. While no assurance can be provided that we will be able to raise further capital under the program, we intend to use the net proceeds from the sale of our shares of common stock, if any, for general corporate purposes, including working capital, marketing, product development, capital expenditures and merger and acquisition activities. </span></p> <p style="margin: 0px; color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"><br/></p> <p style="margin: 0pt; color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; text-align: justify; text-indent: 32pt; line-height: 1.2;"><span style="font-family: 'times new roman', times; font-size: 10pt;">On October 5, 2021, we entered into a securities purchase agreement with the<span> </span>two<span> </span>institutional investors that held the Company's convertible notes issued in June of<span> </span>2020<span> </span>(the "2020<span> </span>Notes") to sell senior secured notes in a private placement (the "Senior Convertible Notes"). The Senior Convertible Notes have an aggregate principal amount of $20 million, an aggregate original issue discount of<span> </span>10%, and rank senior to all our other outstanding and future indebtedness. Approximately $3.3<span> </span>million of the proceeds from the Senior Convertible Notes were used to payoff the<span> </span>2020<span> </span>Notes, which were then to be cancelled. The net proceeds from the issuance of the Senior Convertible Notes was approximately $14.6<span> </span>million, following the original issue discount and deductions for expenses and<span> </span>paydown<span> </span>of the<span> </span>2020<span> </span>Notes. These net proceeds will be used to support<span> </span>Akerna's<span> </span>ongoing growth initiatives and continued investment in current and future technology infrastructure. The Senior Convertible Notes are convertible into shares of common stock of<span> </span>Akerna<span> </span>at a conversion price of $4.05 per share.<span> </span><span style="border-right: none; border-left: none;">The Senior Convertible Notes mature on October 5, 2024 and are to be repaid in monthly installments beginning on January 1, 2022. The Senior Convertible Notes can be repaid in common shares or cash.</span></span></p> <p style="margin: 0pt; color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; text-align: justify; text-indent: 32pt; line-height: 1.2;"><br/></p> <p style="text-align: justify; text-indent: 32pt; margin: 0pt; line-height: 1.2;"><span style="font-family: 'Times New Roman', 'serif'; text-indent: 42.6667px; float: none; display: inline !important;">Management’s plan for the Company to continue as a going concern includes raising additional capital from our ATM program, subject to certain effects on the Senior Convertible Notes should we utilize the program, including resetting the conversion price of the Senior Convertible Notes should we raise more than $<span>5 million</span> under the ATM program, settling our contingent consideration and Senior Convertible Notes in common stock rather than cash as it comes due, and implementing certain cost cutting strategies throughout the organization, while continuing to seek to grow our customer base and realize synergies as we continue to integrate our recent acquisitions. If the Company is unable to raise sufficient additional funds through the ATM Program, it will have to develop and implement a plan to extend payables, reduce expenditures, or scale back our business plan until sufficient additional capital is raised through other equity or debt offerings to support further operations. Such offerings may include the issuance of shares of common stock, warrants to purchase common stock, preferred stock, convertible debt or other instruments that may dilute our current stockholders.</span><span style="font-family: 'Times New Roman', 'serif'; text-indent: 42.6667px;"> </span><br/></p> <p style="text-align: justify; text-indent: 32pt; margin: 0pt; line-height: 1.2;"><br/></p> <p style="text-align: justify; text-indent: 32pt; margin: 0pt; line-height: 1.2; font-family: 'times new roman', times; font-size: 10pt;">The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. We will require additional financing in the second quarter of 2022 to meet our ongoing operational working capital requirements and continue to meet the financial covenants of the Senior Convertible Notes. As noted above, we plan to meet those requirements in part through the use of our ATM Facility, but there are no guarantees that the ATM Facility will permit us to raise sufficient cash to meet our ongoing requirements. These factors raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the consolidated financial statements. If we are unable to raise sufficient capital we may have to reduce operations which could significantly affect our results of operations. If we fail to meet the financial covenants of the Senior Convertible Notes and cannot obtain a waiver from such provisions or otherwise come to an agreement with the holders of our debt, such holders may declare a default on the debt which could subject our assets to seizure and sale, negatively impacting our business. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary if the Company is unable to continue as a going concern.</p>
CY2021Q4 kern Working Capital Deficit
WorkingCapitalDeficit
10900000 USD
CY2021Q4 us-gaap Cash
Cash
13900000 USD
CY2021Q3 kern Common Stock Value Issued
CommonStockValueIssued
25000000 USD
CY2021 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
1900000 USD
CY2021 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
556388 shares
CY2021Q3 us-gaap Secured Debt
SecuredDebt
20000000 USD
CY2021Q4 kern Default Interest Rate
DefaultInterestRate
0.10 pure
CY2021Q4 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
3300000 USD
CY2021Q4 kern Conversion Pricepershare
ConversionPricepershare
4.05
CY2021Q4 us-gaap Debt Instrument Maturity Date Description
DebtInstrumentMaturityDateDescription
The Senior Convertible Notes mature on October 5, 2024 and are to be repaid in monthly installments beginning on January 1, 2022. The Senior Convertible Notes can be repaid in common shares or cash.
CY2021 us-gaap Use Of Estimates
UseOfEstimates
<p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold; font-style: italic;">Use of Estimates</span></p> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;"> </span></p> <p style="margin: 0pt; text-align: justify; text-indent: 32pt; line-height: 1.2;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important; line-height: inherit;">The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the consolidated financial statements and accompanying notes thereto. Our most significant estimates and assumptions are related to the valuation of acquisition-related assets and liabilities, capitalization of internal costs associated with software development, fair value measurements, impairment assessments, loss contingencies, valuation allowance associated with deferred tax assets, stock based compensation expenses, and useful lives of long-lived intangible assets. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results could differ from those estimates. </span></p>
CY2021 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p style="margin: 0pt; color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"><span style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold; font-style: italic;">Reclassifications</span></p> <p style="margin: 0pt; color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; padding-left: 30px;"><br/></p> <p style="margin: 0pt; color: #000000; font-family: 'Times New Roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 32pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; padding-left: 0px; line-height: 1.2;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Certain prior year amounts have been reclassified to conform to the current year presentation.</span></p>
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
300000 USD
CY2020Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
200000 USD
CY2020Q4 us-gaap Accounts Receivable Gross
AccountsReceivableGross
153500 USD
CY2020Q2 us-gaap Accounts Receivable Gross
AccountsReceivableGross
208422 USD
CY2021 kern Bad Debt Expenses
BadDebtExpenses
556890 USD
kern Bad Debt Expenses
BadDebtExpenses
72832 USD
CY2021 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
393306 USD
us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
127754 USD
CY2021Q4 us-gaap Accounts Receivable Gross
AccountsReceivableGross
317084 USD
CY2020Q4 us-gaap Accounts Receivable Gross
AccountsReceivableGross
153500 USD
CY2021 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="border-left: none; border-right: none;"> <p style="margin: 0pt; text-align: justify;"><span style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold; font-style: italic;">Concentrations </span><span style="font-family: 'Times New Roman'; font-size: 10pt; font-style: italic; font-weight: bold;">of Credit Risk</span><br/></p> </div> <div style="font-family: 'times new roman', times; border-right: none; border-left: none;"> <div style="border-left: none; border-right: none;"> <div style="border-left: none; border-right: none;"> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;"> </span></p> <p style="margin: 0pt; text-align: justify; text-indent: 32pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;">We grant credit in the normal course of business to customers in the United States. We periodically perform credit analysis and monitor the financial condition of our customers to reduce credit risk.</span></p> <p style="margin: 0pt; text-align: justify; text-indent: 32pt;"><br/></p> <p style="margin: 0pt; text-align: justify; text-indent: 32pt; line-height: 1.2; font-family: 'times new roman', times; font-size: 10pt;"><span><span style="line-height: inherit;">During the year ended December 31, 2021, the six months ended December 31, 2020 and the year ended June 30, 2</span><span><span>020, </span><span><span>one</span></span><span> government client accounted for 11%, </span></span>14<span><span style="line-height: inherit;"><span>% and 25% of total revenues, respectively.</span></span><span style="line-height: inherit;"><span> As of December 31, 2020, </span></span><span style="line-height: inherit;">two government clients accounted f<span>or a total of 36% </span></span><span style="line-height: inherit;">of net accounts receivable. </span></span></span></p> <p style="margin: 0pt; text-align: justify; text-indent: 32pt; line-height: 1.2;"><span><span><span style="line-height: inherit;"><br/></span></span></span></p> </div> <div> </div> <p style="margin: 0pt; text-align: justify; text-indent: 32pt;"><br/></p> </div> </div>
CY2021 kern Leaseholdimprovementsusefullife
Leaseholdimprovementsusefullife
Lesser of remaining lease term or useful life
CY2020 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
2700000 USD
CY2021 us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
14.4 USD
CY2020 kern Impairment Of Intangible Assets
ImpairmentOfIntangibleAssets
4200000 USD
CY2021 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
28847 USD
CY2021 kern Product Development Stage Costs
ProductDevelopmentStageCosts
5900000 USD
CY2020 kern Product Development Stage Costs
ProductDevelopmentStageCosts
2100000 USD
CY2020 kern Product Development Stage Costs
ProductDevelopmentStageCosts
3100000 USD
CY2021Q4 us-gaap Noncurrent Assets
NoncurrentAssets
37585 USD
CY2020Q4 us-gaap Noncurrent Assets
NoncurrentAssets
15068 USD
CY2021 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-31423 USD
CY2021Q4 kern Deferred Revenue Revenue Recognized
DeferredRevenueRevenueRecognized
11100000 USD
CY2020Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
0.2 USD
CY2021 kern Deferral Of Contract Costs
DeferralOfContractCosts
200000 USD
CY2021 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
20685000 USD
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
7825 USD
CY2020 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
12573 USD
CY2021 kern Adjustedforadoption
Adjustedforadoption
20685000 USD
CY2020 kern Adjustedforadoption
Adjustedforadoption
7825000 USD
CY2020 kern Adjustedforadoption
Adjustedforadoption
12573 USD
CY2021Q4 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
16.6 USD
CY2021 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
1.1 USD
CY2020 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
1.8 USD
CY2020Q4 us-gaap Deferred Revenue
DeferredRevenue
844000 USD
CY2021 us-gaap Deferred Revenue Additions
DeferredRevenueAdditions
12657000 USD
CY2021 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
9375000 USD
CY2021Q4 us-gaap Deferred Revenue
DeferredRevenue
4126000 USD
CY2021Q4 kern Revenuerecognized
Revenuerecognized
20700000 USD
CY2020Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
0.7 USD
CY2020Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
228 USD
CY2021 us-gaap Additions To Contract Holders Funds
AdditionsToContractHoldersFunds
512000 USD
CY2021 kern Amortized Costs
AmortizedCosts
479000 USD
CY2021Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
261000 USD
CY2021Q2 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
1 shares
CY2021Q2 us-gaap Business Combination Consideration Transferred Including Equity Interest In Acquiree Held Prior To Combination1
BusinessCombinationConsiderationTransferredIncludingEquityInterestInAcquireeHeldPriorToCombination1
6188 USD
CY2021Q4 us-gaap Revenues
Revenues
2400000 USD
CY2021Q4 us-gaap Net Income Loss
NetIncomeLoss
400000 USD
CY2020 us-gaap Business Combination Consideration Transferred1
BusinessCombinationConsiderationTransferred1
0 USD
CY2021Q4 kern Assetsand Liability Acquired
AssetsandLiabilityAcquired
14300 USD
CY2020Q1 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
1950000 shares
CY2020Q1 us-gaap Shares Issued Price Per Share
SharesIssuedPricePerShare
9
CY2020Q3 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
800000 shares
CY2020 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
14026 USD
CY2020 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
27523 USD
CY2020 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-17650 USD
CY2020 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-20250 USD
CY2021Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2021Q4 us-gaap Preferred Stock Liquidation Preference
PreferredStockLiquidationPreference
1
CY2020Q3 kern Exchangeable Shares
ExchangeableShares
627225 shares
CY2020Q3 us-gaap Shares Issued
SharesIssued
4798271 shares
CY2020Q4 us-gaap Shares Issued
SharesIssued
309286 shares
CY2021Q4 kern Prepaid Expenses Software And Technology
PrepaidExpensesSoftwareAndTechnology
687740 USD
CY2020Q4 kern Prepaid Expenses Software And Technology
PrepaidExpensesSoftwareAndTechnology
480651 USD
CY2021Q4 kern Prepaid Professional Fees
PrepaidProfessionalFees
546126 USD
CY2020Q4 kern Prepaid Professional Fees
PrepaidProfessionalFees
826195 USD
CY2021Q4 us-gaap Prepaid Insurance
PrepaidInsurance
264097 USD
CY2020Q4 us-gaap Prepaid Insurance
PrepaidInsurance
243222 USD
CY2021Q4 us-gaap Other Prepaid Expense Current
OtherPrepaidExpenseCurrent
260899 USD
CY2020Q4 us-gaap Other Prepaid Expense Current
OtherPrepaidExpenseCurrent
227718 USD
CY2021Q4 us-gaap Unbilled Contracts Receivable
UnbilledContractsReceivable
506984 USD
CY2020Q4 us-gaap Unbilled Contracts Receivable
UnbilledContractsReceivable
612446 USD
CY2021Q4 us-gaap Other Assets
OtherAssets
117918 USD
CY2020Q4 us-gaap Other Assets
OtherAssets
68495 USD
CY2021Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
2383764 USD
CY2021Q4 us-gaap Accounts Payable Current
AccountsPayableCurrent
1943457 USD
CY2020Q4 us-gaap Accounts Payable Current
AccountsPayableCurrent
513610 USD
CY2021Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
319590 USD
CY2020Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
233667 USD
CY2021Q4 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
360361 USD
CY2020Q4 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
216367 USD
CY2021Q4 us-gaap Accrued Employee Benefits Current
AccruedEmployeeBenefitsCurrent
1123467 USD
CY2020Q4 us-gaap Accrued Employee Benefits Current
AccruedEmployeeBenefitsCurrent
311379 USD
CY2021Q4 kern Accrued Contractors
AccruedContractors
1288730 USD
CY2020Q4 kern Accrued Contractors
AccruedContractors
538618 USD
CY2021Q4 us-gaap Settlement Liabilities Current
SettlementLiabilitiesCurrent
681045 USD
CY2020Q4 us-gaap Settlement Liabilities Current
SettlementLiabilitiesCurrent
831232 USD
CY2021Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
346870 USD
CY2020Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
543703 USD
CY2021Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
6063520 USD
CY2020Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
3188576 USD
CY2019Q4 us-gaap Goodwill
Goodwill
20254309 USD
CY2020 us-gaap Goodwill Other Increase Decrease
GoodwillOtherIncreaseDecrease
14300 USD
CY2020 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
25806518 USD
CY2020 kern Goodwillimpairmentrelatedto Ample
GoodwillimpairmentrelatedtoAmple
4172000 USD
CY2020Q4 us-gaap Goodwill
Goodwill
41874527 USD
CY2021 us-gaap Goodwill Other Increase Decrease
GoodwillOtherIncreaseDecrease
5408884 USD
CY2021 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
14042580 USD
CY2021 kern Goodwillimpairmentrelatedto Ample
GoodwillimpairmentrelatedtoAmple
-14383310 USD
CY2021Q4 us-gaap Goodwill
Goodwill
46942681 USD
CY2020 kern Impairment Adjustment
ImpairmentAdjustment
4200000 USD
CY2021 kern Impairment Expenses
ImpairmentExpenses
14400000 USD
CY2021Q4 kern Weightingtothemarketapproach
Weightingtothemarketapproach
0.25 pure
CY2021Q4 kern Weightedtotheincomeapproach
Weightedtotheincomeapproach
0.75 pure
CY2021 us-gaap Finite Lived Intangible Asset Useful Life
FiniteLivedIntangibleAssetUsefulLife
P1Y9M
CY2021Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
25600000 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
3990207 USD
CY2021Q4 kern Finite Lived Intangiable Assets Impairment
FiniteLivedIntangiableAssetsImpairment
USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
21609793 USD
CY2020Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
11805000 USD
CY2020Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
1701205 USD
CY2020Q4 kern Finite Lived Intangiable Assets Impairment
FiniteLivedIntangiableAssetsImpairment
2715000 USD
CY2020Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
7388795 USD
CY2021 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
5600000 USD
CY2020 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
1.8 USD
CY2020 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
1300000 USD
CY2021 us-gaap Capitalized Computer Software Amortization1
CapitalizedComputerSoftwareAmortization1
300000 USD
CY2021Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
249106 USD
CY2020Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1306856 USD
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
95955 USD
CY2020Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
113423 USD
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
153151 USD
CY2020Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
1193433 USD
CY2021 us-gaap Depreciation
Depreciation
127731 USD
us-gaap Depreciation
Depreciation
240742 USD
CY2020 us-gaap Depreciation
Depreciation
27951 USD
CY2021Q4 kern Wrote Of Fixed Assets
WroteOfFixedAssets
1200000 USD
us-gaap Proceeds From Sale Of Furniture And Fixtures
ProceedsFromSaleOfFurnitureAndFixtures
25561 USD
CY2020Q4 us-gaap Furniture And Fixtures Gross
FurnitureAndFixturesGross
191389 USD
kern Accumulated Depreciation
AccumulatedDepreciation
106555 USD
us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
59273 USD
CY2021Q4 kern Equity Loss Of Investee
EquityLossOfInvestee
12641 USD
CY2021 kern Revenue Recognized
RevenueRecognized
25900 USD
kern Revenue Recognized
RevenueRecognized
0 USD
CY2020 kern Revenue Recognized
RevenueRecognized
0 USD
CY2021Q4 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
17305000 USD
CY2021Q4 kern Current Maturities
CurrentMaturities
13200000 USD
CY2021Q4 us-gaap Other Long Term Debt
OtherLongTermDebt
4105000 USD
CY2020Q2 us-gaap Debt Instrument Annual Principal Payment
DebtInstrumentAnnualPrincipalPayment
17 USD
CY2020Q2 kern Debt Instrument Interest Rate Original Issue Discount Percentage
DebtInstrumentInterestRateOriginalIssueDiscountPercentage
0.12 pure
CY2020Q2 us-gaap Other Ownership Interests Value
OtherOwnershipInterestsValue
880 USD
CY2020Q2 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
1000 USD
CY2020Q2 us-gaap Debt Conversion Original Debt Interest Rate Of Debt
DebtConversionOriginalDebtInterestRateOfDebt
0.15 pure
CY2021 kern Debt Instrument Conversion Floor Price
DebtInstrumentConversionFloorPrice
1.92
CY2021Q4 kern Fair Value Issuance Amount
FairValueIssuanceAmount
15 USD
CY2020 us-gaap Debt Instrument Increase Decrease For Period Net
DebtInstrumentIncreaseDecreaseForPeriodNet
800000 USD
CY2020 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
100000 USD
CY2020 us-gaap Interest Expense Other
InterestExpenseOther
700000 USD
CY2020Q4 us-gaap Debt Instrument Annual Principal Payment
DebtInstrumentAnnualPrincipalPayment
1800000 USD
CY2020Q4 kern Settled In Cash
SettledInCash
1500000 USD
CY2020Q4 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
300000 USD
CY2020Q4 kern Convertible Notes Increased
ConvertibleNotesIncreased
1000000 USD
us-gaap Concentration Risk Credit Risk Financial Instrument Maximum Exposure
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposure
100000 USD
us-gaap Interest Expense Other
InterestExpenseOther
900000 USD
CY2020Q4 kern Convertible Notes
ConvertibleNotes
13400000 USD
CY2021Q4 us-gaap Debt Instrument Annual Principal Payment
DebtInstrumentAnnualPrincipalPayment
15200000 USD
CY2021Q4 kern Settled In Cash
SettledInCash
5100000 USD
CY2021Q4 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
10100000 USD
CY2021Q4 kern Convertible Notes Increased
ConvertibleNotesIncreased
2000000 USD
CY2021 us-gaap Concentration Risk Credit Risk Financial Instrument Maximum Exposure
ConcentrationRiskCreditRiskFinancialInstrumentMaximumExposure
20000.00 USD
CY2021 us-gaap Interest Expense Other
InterestExpenseOther
2000000 USD
CY2021Q4 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
0.2 USD
CY2021Q1 kern Installmentamount
Installmentamount
2062500 USD
CY2021Q4 us-gaap Debt Instrument Annual Principal Payment
DebtInstrumentAnnualPrincipalPayment
20000000 USD
CY2021Q4 kern Debt Instrument Interest Rate Original Issue Discount Percentage
DebtInstrumentInterestRateOriginalIssueDiscountPercentage
0.10 pure
CY2021Q4 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
3300000 USD
CY2021Q4 us-gaap Debt Instrument Convertible Conversion Price1
DebtInstrumentConvertibleConversionPrice1
4050000.00
CY2021Q4 kern Conversion Price Percentage
ConversionPricePercentage
0.80 pure
CY2021 us-gaap Debt Instrument Increase Decrease For Period Net
DebtInstrumentIncreaseDecreaseForPeriodNet
30000.00 USD
CY2021 us-gaap Other Expenses
OtherExpenses
0.7 USD
CY2020Q2 us-gaap Long Term Debt Description
LongTermDebtDescription
the Company issued a promissory note to KeyBank National Association (“KeyBank”) in the principal aggregate amount of $2,204,600 (the “PPP Loan”) pursuant to the Paycheck Protection Program under the CARES Act. The PPP Loan had a two-year term bearing interest at a rate of 1% per annum with principal and interest payments of $92,818 to be paid monthly on the 12th of the month beginning 7 months from the date of the PPP Loan. The PPP Loan provides for prepayment of 20% or less of the unpaid principal balance at any time. If more than 20% is prepaid, then all accrued interest must also be paid.
CY2021Q3 kern Convertible Notes Bear Interest Rate
ConvertibleNotesBearInterestRate
1 pure
CY2021Q3 kern Convertible Notes Bear Interest Rate
ConvertibleNotesBearInterestRate
1 pure
CY2021Q3 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
2234730 USD
CY2021Q4 us-gaap Long Term Debt And Capital Lease Obligations Repayments Of Principal In Next Twelve Months
LongTermDebtAndCapitalLeaseObligationsRepaymentsOfPrincipalInNextTwelveMonths
13200000 USD
CY2021Q4 us-gaap Long Term Debt And Capital Lease Obligations Maturities Repayments Of Principal In Year Two
LongTermDebtAndCapitalLeaseObligationsMaturitiesRepaymentsOfPrincipalInYearTwo
6800000 USD
CY2021Q4 kern Aggregate Maturities
AggregateMaturities
20000000 USD
CY2021Q4 us-gaap Convertible Long Term Notes Payable
ConvertibleLongTermNotesPayable
2000000 USD
CY2021Q4 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
695000 USD
CY2021Q4 us-gaap Long Term Debt
LongTermDebt
17305000 USD
CY2021Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
13200000 USD
CY2021Q4 kern Longterm Debt Non Current Maturities
LongtermDebtNonCurrentMaturities
4105000 USD
CY2021Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
75000000 shares
CY2021Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2021Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2021Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2021 us-gaap Common Stock Voting Rights
CommonStockVotingRights
one
CY2019Q2 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
5813804 shares
CY2019Q4 kern Warrants Weighted Average Grant Date Fair Value
WarrantsWeightedAverageGrantDateFairValue
11.5
CY2019 kern Warrants Outstanding Weighted Average Remaining Contractual Term
WarrantsOutstandingWeightedAverageRemainingContractualTerm
P3Y11M19D
CY2019Q2 kern Warrants Aggregate Intrinsic Value Outstanding
WarrantsAggregateIntrinsicValueOutstanding
USD
kern Weighted Average Remaining Life Term Issued
WeightedAverageRemainingLifeTermIssued
CY2020Q4 kern Aggregate Intrinsic Value Issued
AggregateIntrinsicValueIssued
USD
CY2020Q4 kern Aggregate Intrinsic Value Exercised
AggregateIntrinsicValueExercised
USD
kern Warrants Forfeited In Period Number Of Shares
WarrantsForfeitedInPeriodNumberOfShares
shares
kern Warrants Forfeited In Period Weighted Average Grant Date Fair Value
WarrantsForfeitedInPeriodWeightedAverageGrantDateFairValue
kern Weighted Average Rmaining Life Expired
WeightedAverageRmainingLifeExpired
CY2020Q4 kern Aggregate Intrinsic Value Expiredcancelled
AggregateIntrinsicValueExpiredcancelled
USD
CY2020Q4 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
5813804 shares
CY2021Q4 kern Warrants Weighted Average Grant Date Fair Value
WarrantsWeightedAverageGrantDateFairValue
11.5
kern Warrants Outstanding Weighted Average Remaining Contractual Term
WarrantsOutstandingWeightedAverageRemainingContractualTerm
P3Y4M13D
CY2020Q4 kern Warrants Aggregate Intrinsic Value Outstanding
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<p style="margin: 0pt; text-align: justify;"><span style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Note 16 – <span>Revisions of Previously Issued Financial Statements</span></span></p> <p style="margin: 0pt; text-align: justify;"><br/></p> <p style="text-align: justify; text-indent: 36pt; margin: 0cm; font-size: 10pt; font-family: 'Times New Roman', serif; line-height: 1.2;"><span style="color: #000000; font-family: 'times new roman', times; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;">On June 17, 2019, we completed the Mergers with MTech. Prior to the Mergers, MTech was a special purpose acquisition company and had completed an initial public offering in October 2018, which included the issuances of the MTech Private Warrants in a simultaneous private placement transaction. The MTech Private Warrants were exchanged for our Private Warrants as part of the Mergers and our Private Warrants remain outstanding as of December 31, 2021.<span> </span></span><span style="color: #000000; font-family: 'times new roman', times; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;">We initially accounted for these outstanding Private Warrants as components of equity rather than as derivative liabilities. In light of the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) issued by the staff of the SEC on April 12, 2021 (the “SEC Staff Statement”), the Company’s management further evaluated our outstanding warrants under Accounting Standards Codification 815-40, Contracts in Entity’s Own Equity (“ASC 815-40”), which addresses equity versus liability treatment and classification of equity-linked financial instruments, including warrants, and states that a warrant may be classified as a component of equity only if, among other things, the warrant is indexed to the issuer’s common stock.</span></p> <p style="text-align: justify; text-indent: 36pt; margin: 0cm; font-size: 10pt; font-family: 'Times New Roman', serif; line-height: 1.2;"><br/></p> <p style="text-align: justify; text-indent: 36pt; margin: 0cm; font-size: 10pt; font-family: 'Times New Roman', serif; line-height: 1.2;"><span style="font-family: 'times new roman', times; line-height: inherit;"><span style="font-size: 10pt; color: #000000; line-height: inherit;"><span style="color: black; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-family: 'Times New Roman', 'serif';">Based on management’s evaluation and in consultation with the Audit Committee, we concluded that the Company’s Private Warrants are not indexed to the Company’s common stock in the manner contemplated by ASC Section 815-40.</span><span style="color: #000000; font-family: 'Times New Roman', serif; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span> </span>As a result, these warrants are precluded from equity classification and should be recorded as derivative liabilities remeasured to fair value at each reporting period. We assessed the materiality of these errors on prior periods’ consolidated financial statements and concluded that the errors were not material to any prior annual or interim periods. However, we have revised the prior period financial information included in these consolidated financial statements to</span><span style="color: #000000; font-family: 'Times New Roman', serif; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"> reclassify the Private Warrants as derivative liabilities measured at their estimated fair values at the end of each reporting period and recognized changes in the estimated fair value of the derivative instruments from the prior period in the Company’s operating results.</span><span style="color: #000000; font-family: 'Times New Roman', serif; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"> </span></span></span></p> <p style="text-align: justify; text-indent: 36pt; margin: 0cm; font-size: 10pt; font-family: 'Times New Roman', serif; line-height: 1.2;"><br/></p> <p style="text-align: justify; text-indent: 36pt; margin: 0cm; font-size: 10pt; font-family: 'Times New Roman', serif; line-height: 1.2;"><span style="font-family: 'times new roman', times; line-height: inherit;"><span style="font-size: 10pt; color: #000000; line-height: inherit;"><span style="color: #000000; font-family: 'Times New Roman', serif; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 48px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="color: #000000; font-family: 'Times New Roman', serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 44.4667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">The Company's change in accounting for the Private Warrants from components of equity to derivative liabilities has no impact on the Company's current or previously reported cash position. </span><br/></span></span></span></p> <p style="text-align: justify; text-indent: 36pt; margin: 0cm; font-size: 10pt; font-family: 'Times New Roman', serif; line-height: 1.2;"><br/></p> <p style="text-align: justify; text-indent: 36pt; margin: 0cm; font-size: 10pt; font-family: 'Times New Roman', serif; line-height: 1.2;"><span style="font-family: 'times new roman', times; line-height: inherit;"><span style="font-size: 10pt; color: #000000; line-height: inherit;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: justify; text-indent: 44.4667px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">The tables below disclose the effects on the consolidated financial statements included in this Annual Report on Form 10-K: </span></span></span></p> <p style="margin: 0pt; text-align: justify; line-height: 1.2;"><br/></p> <div style="border-left: none; border-right: none;"> <div style="border-left: none; border-right: none;"> <div style="border-left: none; border-right: none;"> <div style="border-left: none; border-right: none;"> <div id="t_ft_3L62CHD39C00000000000000000000b"> <table cellpadding="0" style="height: 102px; border-collapse: collapse; font-family: 'times new roman'; font-size: 10pt; width: 100%; margin-left: auto; margin-right: auto;" width="100%"> <tbody> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px; width: 62.9428%;"><br/></td> <td style="vertical-align: bottom; height: 17px; width: 0.980926%;"><br/></td> <td colspan="8" style="vertical-align: bottom; height: 17px; border-bottom: 1px solid #000000; text-align: center; width: 34.97%;"><b><span style="font-size: 10.0pt; font-family: 'Times New Roman','serif'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">Year Ended June 30, 2020</span></b><br/></td> <td style="vertical-align: middle; padding: 0px; height: 17px; width: 1.03542%;"><br/></td> </tr> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px; width: 62.9428%;"><br/></td> <td style="vertical-align: bottom; height: 17px; width: 0.980926%;"><br/></td> <td colspan="2" style="vertical-align: bottom; height: 17px; border-bottom: 1px solid #000000; text-align: center; width: 11%;"><span style="font-weight: bold;"><span>As report</span>ed</span><br/></td> <td style="text-align: left; vertical-align: middle; padding: 0px; height: 17px; width: 0.980926%; border-bottom-width: 1px;"><br/></td> <td colspan="2" style="vertical-align: bottom; height: 17px; text-align: center; border-bottom: 1px solid #000000; width: 11%;"><span style="font-weight: bold;">Adjustment</span><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 0.980926%; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1.03542%; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; height: 17px; border-bottom: 1px solid #000000; text-align: center; width: 9.97275%;"><span style="font-weight: bold;">As revised</span></td> <td style="vertical-align: middle; padding: 0px; height: 17px; width: 1.03542%;"><br/></td> </tr> <tr style="height: 17px; background-color: #cceeff;"> <td style="vertical-align: bottom; width: 62.9428%; height: 17px; background-color: #cceeff;"><b style="color: #000000; font-family: 'times new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Consolidated <span style="vertical-align: bottom; height: 17px; padding: 0px 2px 0px 0px; width: 65.6593%; font-style: normal; text-decoration: none; color: black;">Statements</span> of Operations</b></td> <td style="vertical-align: bottom; width: 0.980926%; height: 17px; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: left; width: 1%; height: 17px; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; width: 10%; height: 17px; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="text-align: left; vertical-align: middle; padding: 0px; width: 0.980926%; height: 17px; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: left; width: 1%; height: 17px; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; width: 10%; height: 17px; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: left; width: 0.980926%; height: 17px; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: left; width: 1.03542%; height: 17px; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; width: 9.97275%; height: 17px; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: middle; padding: 0px; width: 1.03542%; height: 17px; background-color: #cceeff;"><br/></td> </tr> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px; width: 62.9428%;"><span style="color: #000000; font-family: 'times new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">Change in fair value of derivative liability</span></span><br/></td> <td style="vertical-align: bottom; height: 17px; width: 0.980926%;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%; border-bottom-width: 1px;">—</td> <td style="text-align: left; vertical-align: middle; padding: 0px; height: 17px; width: 0.980926%; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%; border-bottom-width: 1px;">1,962,034</td> <td style="vertical-align: bottom; height: 17px; text-align: left; width: 0.980926%; border-bottom-width: 1px;"/> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1.03542%; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 9.97275%; border-bottom-width: 1px;">1,962,034</td> <td style="vertical-align: middle; padding: 0px; height: 17px; width: 1.03542%;"><br/></td> </tr> <tr style="height: 17px; background-color: #cceeff;"> <td style="vertical-align: bottom; height: 17px; width: 62.9428%; background-color: #cceeff;"><span style="color: #000000; font-family: 'times new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Net loss<span> </span></span><span style="color: #000000; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-family: 'Times New Roman', serif;">attributable to Akerna shareholders</span></span></td> <td style="vertical-align: bottom; height: 17px; width: 0.980926%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%; background-color: #cceeff;">(15,534,345)</td> <td style="text-align: left; vertical-align: middle; padding: 0px; height: 17px; width: 0.980926%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%; background-color: #cceeff;">1,962,034</td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 0.980926%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1.03542%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 9.97275%; background-color: #cceeff;">(13,572,311)</td> <td style="vertical-align: middle; padding: 0px; height: 17px; width: 1.03542%; background-color: #cceeff;"><br/></td> </tr> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px; width: 62.9428%;"><span style="color: #000000; font-family: 'times new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">Net loss per share</span></span></td> <td style="vertical-align: bottom; height: 17px; width: 0.980926%;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%;">(1.31)</td> <td style="text-align: left; vertical-align: middle; padding: 0px; height: 17px; width: 0.980926%;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%;">—</td> <td style="vertical-align: bottom; height: 17px; text-align: left; width: 0.980926%;"/> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1.03542%;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 9.97275%;">(1.14)</td> <td style="vertical-align: middle; padding: 0px; height: 17px; width: 1.03542%;"><br/></td> </tr> </tbody> </table> </div> <div id="t_ft_GREZQMHN9C00000000000000000000b"> <table cellpadding="0" style="height: 116px; border-collapse: collapse; font-family: 'times new roman'; font-size: 10pt; width: 100%; margin-left: 0.1px;" width="100%"> <tbody> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px; margin: 0pt; padding-right: 8px;"> <p><br/></p> </td> <td style="vertical-align: bottom; height: 17px; margin: 0pt; padding-right: 8px;"><br/></td> <td colspan="8" style="vertical-align: bottom; text-align: center; height: 17px;"> <p style="text-align: center;"><br/></p> <p style="border-bottom: 1px solid #000000; text-align: center;"><span style="font-weight: bold; text-align: center;"><b style="text-align: center;"><span style="font-size: 10.0pt; font-family: 'Times New Roman','serif'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA; text-align: center;">Six Months Ended December 31, 2020</span></b></span></p> </td> <td style="vertical-align: bottom; height: 17px; white-space: nowrap;"><br/></td> </tr> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px; margin: 0pt; padding-right: 8px;"><br/></td> <td style="vertical-align: bottom; height: 17px; margin: 0pt; padding-right: 8px;"/> <td colspan="2" style="vertical-align: bottom; height: 17px; text-align: center; border-bottom: 1px solid #000000;"><span style="font-weight: bold; text-align: center;">As reported</span></td> <td style="height: 17px; vertical-align: bottom; text-align: center; white-space: nowrap;" valign="middle"/> <td colspan="2" style="vertical-align: bottom; height: 17px; text-align: center; white-space: nowrap; border-bottom: 1px solid #000000;"><span style="font-weight: bold; margin: 0pt; text-align: center;">Adjustment</span></td> <td style="vertical-align: bottom; height: 17px; text-align: center; white-space: nowrap;"/> <td colspan="2" style="vertical-align: bottom; height: 17px; text-align: center; white-space: nowrap; border-bottom: 1px solid #000000;"><span style="font-weight: bold; margin: 0pt; text-align: center;">As revised</span></td> <td style="height: 17px; vertical-align: bottom; white-space: nowrap;" valign="middle"><br/></td> </tr> <tr style="height: 17px; background-color: #cceeff;"> <td style="text-indent: 0px; margin-left: 0.1px; vertical-align: bottom; height: 17px; width: 63%; background-color: #cceeff;"><span style="font-weight: bold;">Condensed Consolidated Statements of Operations</span></td> <td style="height: 17px; margin: 0pt; padding-right: 8px; vertical-align: bottom; width: 1%; background-color: #cceeff;"><br/></td> <td style="text-align: left; height: 17px; margin: 0pt; padding-right: 8px; vertical-align: bottom; width: 1%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; white-space: nowrap; width: 10%; background-color: #cceeff;"><br/></td> <td style="text-align: left; vertical-align: bottom; height: 17px; white-space: nowrap; width: 1%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; white-space: nowrap; width: 1%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; white-space: nowrap; width: 10%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; white-space: nowrap; width: 1%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; white-space: nowrap; width: 1%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; white-space: nowrap; width: 10%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; height: 17px; white-space: nowrap; width: 1%; background-color: #cceeff;"><br/></td> </tr> <tr style="height: 14px;"> <td style="height: 14px; text-indent: 0px; margin-left: 0.1px; vertical-align: bottom;"><span style="vertical-align: bottom; height: 17px; padding: 0px 2px 0px 0px; width: 65.6593%;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">Change in fair value of derivative liability</span></span></td> <td style="vertical-align: bottom; height: 14px; margin: 0pt; padding-right: 8px;"> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;">   </span></p> </td> <td style="vertical-align: bottom; height: 14px; text-align: left; margin: 0pt; padding-right: 8px;"> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;">   </span></p> </td> <td align="right" style="height: 14px; white-space: nowrap; margin: 0pt; vertical-align: bottom;"><span style="margin: 0pt;"><span style="border-left: none; border-right: none;">—</span></span></td> <td style="height: 14px; text-align: left; vertical-align: bottom; white-space: nowrap;" valign="middle"/> <td style="vertical-align: bottom; height: 14px; text-align: left; white-space: nowrap;"><br/></td> <td align="right" style="height: 14px; white-space: nowrap; margin: 0pt; vertical-align: bottom;"><span style="margin: 0pt;">746,852</span></td> <td align="left" style="height: 14px; white-space: nowrap; padding-right: 8px; margin: 0pt; vertical-align: bottom;"/> <td style="vertical-align: bottom; height: 14px; text-align: left; white-space: nowrap;"><br/></td> <td align="right" style="height: 14px; white-space: nowrap; margin: 0pt; vertical-align: bottom;"><span style="margin: 0pt;">746,852</span></td> <td style="height: 14px; vertical-align: bottom; white-space: nowrap;" valign="middle"/> </tr> <tr style="height: 17px; background-color: #cceeff;"> <td style="vertical-align: bottom; height: 17px; text-indent: 0px; background-color: #cceeff;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Net loss<span> </span></span><span style="color: #000000; font-size: 10pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-family: 'Times New Roman', serif;">attributable to Akerna shareholders</span><br/></td> <td style="vertical-align: bottom; height: 17px; margin: 0pt; padding-right: 8px; background-color: #cceeff;"> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;">   </span></p> </td> <td style="vertical-align: bottom; height: 17px; text-align: left; margin: 0pt; padding-right: 8px; background-color: #cceeff;"><br/></td> <td align="right" style="height: 17px; white-space: nowrap; margin: 0pt; vertical-align: bottom; background-color: #cceeff;"><span style="margin: 0pt;">(<span style="border-left: none; border-right: none;">16,957,334</span>)</span></td> <td style="height: 17px; text-align: left; vertical-align: bottom; white-space: nowrap; background-color: #cceeff;" valign="middle"><br/></td> <td style="vertical-align: bottom; height: 17px; text-align: left; white-space: nowrap; background-color: #cceeff;"><br/></td> <td align="right" style="height: 17px; white-space: nowrap; margin: 0pt; vertical-align: bottom; background-color: #cceeff;"><span style="margin: 0pt;"><span style="border-right: none; border-left: none;">746,852</span></span></td> <td style="vertical-align: bottom; height: 17px; text-align: left; white-space: nowrap; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; height: 17px; text-align: left; white-space: nowrap; background-color: #cceeff;"><br/></td> <td align="right" style="height: 17px; white-space: nowrap; margin: 0pt; vertical-align: bottom; background-color: #cceeff;"><span style="margin: 0pt;">(<span style="margin: 0pt;">16,210,482</span>)</span></td> <td style="height: 17px; vertical-align: bottom; white-space: nowrap; background-color: #cceeff;" valign="middle"><br/></td> </tr> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">Net loss per share</span><br/></td> <td style="vertical-align: bottom; height: 17px; margin: 0pt; padding-right: 8px;"><br/></td> <td style="vertical-align: bottom; height: 17px; text-align: left; margin: 0pt; padding-right: 8px;"><br/></td> <td align="right" style="height: 17px; white-space: nowrap; margin: 0pt; vertical-align: bottom;"><span style="margin: 0pt;">(1.01)</span></td> <td style="height: 17px; text-align: left; vertical-align: bottom; white-space: nowrap;" valign="middle"/> <td style="vertical-align: bottom; height: 17px; text-align: left; white-space: nowrap;"><br/></td> <td align="right" style="height: 17px; white-space: nowrap; margin: 0pt; vertical-align: bottom;"><span style="margin: 0pt;">—</span></td> <td align="left" style="height: 17px; white-space: nowrap; padding-right: 8px; margin: 0pt; vertical-align: bottom;"/> <td style="vertical-align: bottom; height: 17px; text-align: left; white-space: nowrap;"><br/></td> <td align="right" style="height: 17px; white-space: nowrap; margin: 0pt; vertical-align: bottom;"><span style="margin: 0pt;">(1.01)</span></td> <td style="height: 17px; vertical-align: bottom; white-space: nowrap;" valign="middle"/> </tr> </tbody> </table> </div> <p><br/></p> </div> </div> </div> <div style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; border-left: none; border-right: none;"> <div id="t_ft_K81L1T5K9S00000000000000000000b"> <table cellpadding="0" style="height: 109px; border-collapse: collapse; font-family: 'times new roman'; font-size: 10pt; width: 100%; margin-left: auto; margin-right: auto;" width="100%"> <tbody> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px;"><br/></td> <td style="vertical-align: bottom; height: 17px;"><br/></td> <td colspan="8" style="vertical-align: bottom; text-align: center; height: 17px;"> <p style="margin: 0px; border-bottom: 1px solid #000000;"><span style="font-weight: bold;"><b><span style="font-size: 10pt; font-family: 'Times New Roman', 'serif';">As of December 31, 2020</span></b></span></p> </td> <td style="vertical-align: middle; padding: 0px; height: 17px;"><br/></td> </tr> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px;"><br/></td> <td style="vertical-align: bottom; height: 17px;"/> <td colspan="2" style="vertical-align: bottom; height: 17px; text-align: center; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"><span style="font-weight: bold;">As reported</span></td> <td style="height: 17px; vertical-align: middle; padding: 0px; text-align: center;" valign="middle"/> <td colspan="2" style="vertical-align: bottom; height: 17px; text-align: center; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"><span style="font-weight: bold;">Adjustment</span></td> <td style="vertical-align: bottom; height: 17px; text-align: center;"/> <td colspan="2" style="vertical-align: bottom; height: 17px; text-align: center; border-bottom-width: 1pt; border-bottom-style: solid; border-bottom-color: #000000;"><span style="font-weight: bold;">As revised</span></td> <td style="height: 17px; vertical-align: middle; padding: 0px;" valign="middle"><br/></td> </tr> <tr style="height: 17px; background-color: #cceeff;"> <td style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; text-indent: 0px; margin-left: 0.1px; vertical-align: bottom; height: 17px; width: 63%; background-color: #cceeff;"><span style="font-weight: bold;"><b style="color: #000000; font-family: 'times new roman', times; font-size: 12px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #cceeff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;"><span style="color: black;">Consolidated Balance Sheet</span></b><br/></span></td> <td style="vertical-align: bottom; height: 17px; width: 1%; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="text-align: left; vertical-align: middle; padding: 0px; height: 17px; width: 1%; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: left; height: 17px; width: 1%; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px; width: 10%; background-color: #cceeff; border-bottom-width: 1px;"><br/></td> <td style="vertical-align: middle; padding: 0px; height: 17px; width: 1%; background-color: #cceeff;"><br/></td> </tr> <tr style="height: 14px;"> <td style="height: 14px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; text-indent: 0px; margin-left: 0.1px; vertical-align: bottom;"><span style="vertical-align: bottom; height: 17px; padding: 0px 2px 0px 0px; width: 65.6593%;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">Derivative liability</span></span></td> <td style="vertical-align: bottom; height: 14px;"> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;"> </span></p> </td> <td style="vertical-align: bottom; height: 14px; text-align: left;"> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;"> </span></p> </td> <td style="vertical-align: bottom; height: 14px; text-align: right;">—</td> <td style="height: 14px; text-align: left; vertical-align: middle; padding: 0px;" valign="middle"/> <td style="vertical-align: bottom; height: 14px; text-align: left;"><br/></td> <td style="vertical-align: bottom; height: 14px; text-align: right;">(311,376)</td> <td style="vertical-align: bottom; height: 14px; text-align: left;"/> <td style="vertical-align: bottom; height: 14px; text-align: left;"><br/></td> <td style="vertical-align: bottom; height: 14px; text-align: right;">(311,376)<br/></td> <td style="height: 14px; padding: 0px; vertical-align: middle;" valign="middle"/> </tr> <tr style="background-color: #cceeff; height: 17px;"> <td style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; text-indent: 0px; margin-left: 0.1px; vertical-align: bottom; background-color: #cceeff; height: 17px;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Total liabilities</span></td> <td style="vertical-align: bottom; background-color: #cceeff; height: 17px;"><br/></td> <td style="vertical-align: bottom; text-align: left; background-color: #cceeff; height: 17px;"><br/></td> <td style="vertical-align: bottom; text-align: right; background-color: #cceeff; height: 17px;">(19,635,076)</td> <td style="text-align: left; vertical-align: middle; padding: 0px; background-color: #cceeff; height: 17px;"><br/></td> <td style="vertical-align: bottom; text-align: left; background-color: #cceeff; height: 17px;"><br/></td> <td style="vertical-align: bottom; text-align: right; background-color: #cceeff; height: 17px;">(311,376)</td> <td style="vertical-align: bottom; text-align: left; background-color: #cceeff; height: 17px;"><br/></td> <td style="vertical-align: bottom; text-align: left; background-color: #cceeff; height: 17px;"><br/></td> <td style="vertical-align: bottom; text-align: right; background-color: #cceeff; height: 17px;">(19,946,452)</td> <td style="padding: 0px; vertical-align: middle; background-color: #cceeff; height: 17px;"><br/></td> </tr> <tr style="height: 17px;"> <td style="vertical-align: bottom; height: 17px; padding: 0px 2px 0px 0px;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">Additional paid-in capital</span><br/></td> <td style="vertical-align: bottom; height: 17px;"><br/></td> <td style="vertical-align: bottom; height: 17px; text-align: left;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px;"><span style="color: #000000; font-family: 'Times New Roman', serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">95,090,833</span></td> <td style="height: 17px; text-align: left; vertical-align: middle; padding: 0px;" valign="middle"/> <td style="vertical-align: bottom; height: 17px; text-align: left;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px;">(1,004,450)</td> <td style="vertical-align: bottom; height: 17px; text-align: left;"/> <td style="vertical-align: bottom; height: 17px; text-align: left;"><br/></td> <td style="vertical-align: bottom; text-align: right; height: 17px;"><span style="color: #000000; font-family: 'Times New Roman', serif; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">94,086,433</span></td> <td style="height: 17px; vertical-align: middle; padding: 0px;" valign="middle"/> </tr> <tr style="height: 10px; background-color: #cceeff;"> <td style="vertical-align: bottom; height: 10px; padding: 0px 2px 0px 0px; background-color: #cceeff;"><span style="color: #000000; font-family: 'times new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;"><span style="color: #000000; font-family: 'times new roman', times; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Accumulated deficit</span></span></td> <td style="vertical-align: bottom; height: 10px; background-color: #cceeff;"> <p style="margin: 0pt;"><span style="font-family: 'Times New Roman'; font-size: 10pt;"> </span></p> </td> <td style="vertical-align: bottom; height: 10px; text-align: left; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; height: 10px; text-align: right; background-color: #cceeff;"><span style="color: #000000; font-family: 'times new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">(57,872,599)</span></td> <td style="height: 10px; text-align: left; vertical-align: middle; padding: 0px; background-color: #cceeff;" valign="middle"/> <td style="vertical-align: bottom; height: 10px; text-align: left; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; height: 10px; text-align: right; background-color: #cceeff;"><span style="color: #000000; font-family: 'times new roman'; font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">693,074</span></td> <td style="vertical-align: bottom; height: 10px; text-align: left; background-color: #cceeff;"/> <td style="vertical-align: bottom; height: 10px; text-align: left; background-color: #cceeff;"><br/></td> <td style="vertical-align: bottom; height: 10px; text-align: right; background-color: #cceeff;">(57,179,525)</td> <td style="height: 10px; vertical-align: middle; padding: 0px; background-color: #cceeff;" valign="middle"/> </tr> </tbody> </table> </div> </div> </div>

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