iBio Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Disclosure of Correction of Immaterial Error

Disclosure of Correction of Immaterial Error

9 Months Ended

Mar. 31, 2021

Disclosure of Correction of Immaterial Error [Abstract]

Disclosure of Correction of Immaterial Error

20. Disclosure of Correction of Immaterial Error

The Company reclassified certain expenses on its Condensed Consolidated Statement of Operations effective for the third quarter of fiscal 2021. These changes in classification align the Company’s external presentation of operating-related expenses with the way that the Company's chief operating decision maker (CODM) expects to assess spend and resource allocation decisions around the Company’s operations as well as provide users of the financial statements with more information including separately stating cost of goods sold and classifying costs on the Statement of Operations according to their primary function (e.g. Research and development). The Company has reclassified these expenses for the prior periods presented to provide comparable historical financial information. The Company intends to use this new presentation of operating-related expenses going forward.

The Company assessed the materiality of this error in accordance with SAB No. 99 “Materiality” and Accounting Standards Codification 250 Accounting Changes and Error Corrections and determined that this was an immaterial error.

The reclassifications did not have any impact to consolidated operating income (loss), net income (loss), cash flows or earnings per share. The following tables illustrate the reclassifications and financial impact on the various line items impacted on the Condensed Consolidated Statement of Operations and Segment Reporting, as follows:

Statement of Operations Reclassifications


	Three Months Ended
(In thousands)	March 31, 2020
Operating expense:	As Reported		Adjustment	As Revised		% Change
Cost of goods sold	$	—	86	$	86	100	%
Research and Development		999	96		1,095	10	%
General and administrative		3,161	(182)		2,979	(6)	%
Total operating expenses	$	4,160		$	4,160

	Nine Months Ended
(In thousands)	March 31, 2020
Operating expense:	As Reported		Adjustment	As Revised		% Change
Cost of goods sold	$	—	404	$	404	100	%
Research and Development		2,864	126		2,990	4	%
General and administrative		8,728	(530)		8,198	(6)	%
	$	11,592		$	11,592

Segment Reporting Reclassifications


As Reported:
Three Months Ended March 31, 2020 (in thousands)	iBio, Inc.		iBio CDMO		Eliminations		Total
Cost of goods sold	$	—	$	—	$	—	$	—
Research and Development		78		1,722		(801)		999
General and administrative		1,584		1,774		(197)		3,161

As Revised:
Three Months Ended March 31, 2020 (in thousands)	iBio, Inc.		iBio CDMO				Total
Cost of goods sold	$	72		14	$	—	$	86
Research and Development		14		1,882		(801)		1,095
General and administrative		1,576		1,600		(197)		2,979

As Reported:
Nine Months Ended March 31, 2020 (in thousands)	iBio, Inc.		iBio CDMO				Total
Cost of goods sold	$	—	$	—	$	—	$	—
Research and Development		3,152		2,005		(1,307)		3,850
General and administrative		3,090		7,091		(1,073)		9,108

As Revised:
Nine Months Ended March 31, 2020 (in thousands)	iBio, Inc.		iBio CDMO				Total
Cost of goods sold	$	341		63	$	—	$	404
Research and Development		2,829		2,454		(1,307)		3,976
General and administrative		3,072		6,579		(1,073)		8,578