iBio Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Disclosure of Prior Period Financial Statement Immaterial Errors

Disclosure of Prior Period Financial Statement Immaterial Errors

12 Months Ended

Jun. 30, 2021

Disclosure of Prior Period Financial Statement Immaterial Errors [Abstract]

Disclosure of Prior Period Financial Statement Immaterial Errors

26. Disclosure of Prior Period Financial Statement Immaterial Errors

Operating Expense Reclassifications

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) assesses 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
	Year Ended
(In thousands)	June 30, 2020
Operating expense:	As Reported		Adjustment		As Revised		% Change
Cost of goods sold	$	—	$	703	$	703	100	%
Research and development		3,213		360		3,573	11	%
General and administrative		12,428		(1,063)		11,365	(9)	%
Total operating expenses	$	15,641			$	15,641


Segment Reporting Reclassifications

As Reported:
For the Year Ended June 30, 2020 (in thousands)	iBio, Inc.		iBio CDMO		Eliminations		Total
Cost of goods sold	$	—	$	—	$	—	$	—
Research and development		1,106		3,805		(1,698)		3,213
General and administrative		5,381		7,807		(760)		12,428

As Revised:
For the Year Ended June 30, 2020 (in thousands)	iBio, Inc.		iBio CDMO		Eliminations		Total
Cost of goods sold	$	640	$	63	$	—	$	703
Research and development		491		4,780		(1,698)		3,573
General and administrative		5,356		6,769		(760)		11,365

Share Issuance

The Company revised previously issued condensed consolidated financial statements as of March 31, 2020 and for the three- and nine-month periods ended March 31, 2021 for an error related to the omission of a share issuance completed during the period. A summary of revisions to our previously reported financial statements presented herein for comparative purposes is included below:

Revised Consolidated Balance Sheets


	June 30, 2020
(In thousands)	As Reported		Adjustment		As Revised
Subscription receivable	$	—	$	2,190	$	2,190
Total current assets		61,748		2,190		63,938
Total Assets		94,189		2,190		96,379
APIC		206,931		2,190		209,121
Total equity		56,607		2,190		58,797
Total liabilities and equity		94,189		2,190		96,379

Revised Consolidated Statement of Operations


	Year Ended
	June 30, 2020
Loss per common share attributable to iBio, Inc. stockholders – basic and diluted	$	(0.61)	0.00	(0.61)
Weighted-average common shares outstanding – basic and diluted (000’s)		62,795	96	62,891