0001493152-21-003428.txt : 20210212 0001493152-21-003428.hdr.sgml : 20210212 20210211202618 ACCESSION NUMBER: 0001493152-21-003428 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 53 CONFORMED PERIOD OF REPORT: 20201231 FILED AS OF DATE: 20210212 DATE AS OF CHANGE: 20210211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GBS Inc. CENTRAL INDEX KEY: 0001725430 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 821512711 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-39825 FILM NUMBER: 21622034 BUSINESS ADDRESS: STREET 1: 733 THIRD AVENUE STREET 2: FLOOR 15 CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 646-790-5756 MAIL ADDRESS: STREET 1: 733 THIRD AVENUE STREET 2: FLOOR 15 CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: Glucose Biosensor Systems (Greater China) Holdings, Inc. DATE OF NAME CHANGE: 20171214 10-Q 1 form10-q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2020

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission File Number 001-39825

GBS Inc.

(Exact name of Registrant as specified in its Charter)

Delaware

82-1512711

(State or other jurisdiction of

incorporation or organization)

(I.R.S Employer

Identification No.)

708 3rd Avenue, 6th Floor, New York

10017

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (646) 828-8258

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $ 0.01 per share		GBS		Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES [ ] NO [X]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

YES [X] NO [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]		Accelerated filer [ ]

Non- large accelerated filer [X]		Smaller reporting company [X]

		Emerging growth company [X]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [ ] NO [X]

The number of shares of registrant’s common stock outstanding as of February 11, 2021 was 11,875,222

Table of Contents

PART I. FINANCIAL INFORMATION	3

Item 1. Financial statements (Unaudited)	3

Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Operations and Other Comprehensive Loss	4
Condensed Consolidated Statements of Changes in Shareholders’ Equity	5
Condensed Consolidated Statements of Cash Flows	7
Notes to Condensed Consolidated Financial Statements	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Result of Operations	17
Item 3. Quantitative and Qualitative Disclosures about Market Risk	24
Item 4. Controls and Procedures	24

PART II—OTHER INFORMATION	25

Item 1. Legal Proceedings.	25
Item 1a. Risk Factors	25
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	25
Item 3. Defaults Upon Senior Securities.	25
Item 4. Mine Safety Disclosures.	26
Item 5. Other Information.	26
Item 6. Exhibits.	26

Signatures	27

PART I. FINANCIAL INFORMATION

Item 1. Financial statements (Unaudited)

GBS Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in $)

	December 31, 2020			June 30, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	19,877,860		$	427,273
Deferred charges		-			1,863,613
Other current assets		88,548			49,062
Total current assets		19,966,408			2,339,948

Investment in affiliate		-			135,692

TOTAL ASSETS	$	19,966,408		$	2,475,640

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses	$	734,825		$	787,469
Related party payables		431,621			1,769,293
Convertible notes payable		-			5,133,706
Total current liabilities		1,166,446			7,690,468

Employee benefit liabilities		17,947			-

Total liabilities		1,184,393			7,690,468
Commitments and contingencies - Note 10		-			-

Shareholders’ equity (deficit):
Preferred stock, $0.01 par value, 10,000,000 shares authorized, 3,000,000 and 2,370,891 shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively		30,000			23,709
Common stock, $0.01 par value, 100,000,000 shares authorized, 10,422,527 and 8,630,000 shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively		104,225			86,300
Additional paid-in capital		37,956,585			10,899,942
Accumulated deficit		(18,888,991	)		(15,832,517	)
Accumulated other comprehensive loss		(380,663	)		(363,951	)
Total consolidated group equity (deficit)		18,821,156			(5,186,517	)
Non-controlling interests		(39,141	)		(28,311	)
Total shareholders’ equity (deficit)		18,782,015			(5,214,828	)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	19,966,408		$	2,475,640

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

GBS Inc.

Condensed Consolidated Statements of Operations and Other Comprehensive Loss

(Unaudited)

(Amounts in $)

	Three Months Ended December 31,						Six Months Ended December 31,
	2020			2019			2020			2019

Revenues
Other income:
Government support income	$	283,037			-		$	338,464		$	-
Shared services		-			(798	)		-			121,277
Total revenues		283,037			(798	)		338,464			121,277

Operating expenses:
General and administrative expenses		671,450			972,012			1,192,453			1,698,340
Development and regulatory approval expenses		341,820			494,667			372,758			599,848
Prospectus and capital raising expenses		187,093			236,438			353,574			142,365

Total operating expenses		1,200,363			1,703,117			1,918,785			2,440,553

Loss from operations		(917,326	)		(1,703,915	)		(1,580,321	)		(2,319,276	)

Other (expense) income:
Interest expense		(986,860	)		(149,145	)		(1,072,688	)		(298,656	)
Loss from unconsolidated equity method investment		-			-			(135,692	)		-
Realized foreign exchange loss		(86,637	)		-			(279,107	)		-
Interest income		434			27			504			69
Total other expense		(1,073,063	)		(149,118	)		(1,486,983	)		(298,587	)
Loss before income taxes		(1,990,389	)		(1,853,033	)		(3,067,304	)		(2,617,863	)

Income tax (expense)/benefit
Current		-			-			-			-
Deferred		-			-			-			-
Total income tax (expense)/benefit		-			-			-			-

Net loss		(1,990,389	)		(1,853,033	)		(3,067,304	)		(2,617,863	)
Net loss attributable to noncontrolling interest		(6,425	)		(16,715	)		(10,830	)		(23,695	)
Net loss attributable to GBS, Inc.	$	(1,983,964	)	$	(1,836,318	)	$	(3,056,474	)	$	(2,594,168	)

Other comprehensive income
Foreign currency translation gain (loss)		33,856			(133,286	)		(16,712	)		(129,050	)
Total other comprehensive income		33,856			(133,286	)		(16,712	)		(129,050	)

Comprehensive net loss attributable to GBS, Inc	$	(1,956,533	)	$	(1,986,319	)	$	(3,084,016	)	$	(2,746,913	)

Net loss per share, basic and diluted	$	(0.23	)	$	(0.22	)	$	(0.35	)	$	(0.30	)

Weighted average shares outstanding, basic and diluted		8,622,724			8,510,000			8,626,362			8,510,000

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

GBS Inc.

Condensed Consolidated Statements of Changes in Shareholders’ Equity

(Unaudited)

(Amounts in $)

	Preferred stock						Common stock						Additional paid in			Accumulated			Other comprehensive			Non-controlling			Total stockholders’ equity
	Shares			Amount			Shares			Amount			capital			deficit			(loss) income			interest			(deficit)
Balance, June 30, 2020		2,370,891		$	23,709			8,630,000		$	86,300		$	10,899,942		$	(15,832,517	)	$	(363,951	)	$	(28,311	)	$	(5,214,828	)
Issuance of convertible preferred shares		439,299			4,393			-			-			3,290,352			-			-			-			3,294,745
Foreign currency translation loss		-			-			-			-			-			-			(50,568	)		-			(50,568	)
Net loss		-			-			-			-			-			(1,072,510	)		-			(4,405	)		(1,076,915	)
Balance, September 30, 2020		2,810,190			28,102			8,630,000			86,300			14,190,294			(16,905,027	)		(414,519	)		(32,716	)		(3,047,566	)
Issuance of common stock at initial public offering		-			-			1,270,589			12,706			21,587,307			-			-			-			21,600,013
Issuance cost of common stock at initial public offering		-			-			-			-			(3,867,565	)		-			-			-			(3,867,565	)
Cancellation of common stock in exchange for preferred shares		3,000,000			30,000			(3,000,000	)		(30,000	)		-			-			-			-			-
Conversion of convertible notes into common stock at initial public offering		-			-			710,548			7,105			5,126,601			-			-			-			5,133,706
Conversion of convertible preferred shares into common stock at initial public offering		(2,810,190	)		(28,102	)		2,810,190			28,102			-			-			-			-			-
Beneficial conversion feature		-			-			-			-			905,948			-			-			-			905,948
Series A warrants exercised to purchase common shares		-			-			1,200			12			10,188			-			-			-			10,200
Series A and B warrants acquired		-			-			-			-			3,812			-			-			-			3,812
Foreign currency translation gain		-			-			-			-			-			-			33,856			-			33,856
Net loss		-			-			-			-			-			(1,983,964	)		-			(6,425	)		(1,990,389	)
Balance, December 31, 2020		3,000,000		$	30,000			10,422,527		$	104,225		$	37,956,585		$	(18,888,991	)	$	(380,663	)	$	(39,141	)	$	18,782,015

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

	Preferred stock				Common stock				Additional paid in			Accumulated			Other comprehensive			Non-controlling			Total stockholders’ equity
	Shares		Amount		Shares		Amount		capital			deficit			(loss) income			interest			(deficit)

Balance, June 30, 2019		2,064,884	$	20,649		8,510,000	$	85,100	$	8,164,804			(12,668,741	)		(216,870	)		637,919		$	(3,977,139	)
Reclassification of noncontrolling interest		-		-		-		-		(637,056	)		-			-			637,056			-
Balance, June 30, 2019		2,064,884		20,649		8,510,000		85,100		8,801,860			(12,668,741	)		(216,870	)		863			(3,977,139	)
Deemed dividend		-		-		-		-		(976,308	)		-			-			-			(976,308	)
Issuance of convertible preferred shares		259,007		2,590		-		-		1,939,964			-			-			-			1,942,554
Issuance costs for common and preferred shares		-		-		-		-		(116,402	)		-			-			-			(116,402	)
Foreign currency translation loss		-		-		-		-		-			-			4,234			-			4,234
Net loss		-		-		-		-		-			(757,850	)		-			(6,980	)		(764,830	)
Balance, September 30, 2019		2,323,891		23,239		8,510,000		85,100		9,649,114			(13,426,591	)		(212,636	)		(6,117	)		(3,887,891	)
Foreign currency translation loss		-		-		-		-		-			-			(133,286	)		-			(133,286	)
Net loss		-		-		-		-		-			(1,836,318	)		-			(16,715	)		(1,853,033	)
Balance, December 31, 2019		2,323,891	$	23,239		8,510,000	$	85,100	$	9,649,114		$	(15,262,909	)	$	(345,922	)	$	(22,832	)	$	(5,874,210	)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

GBS Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amount in $)

	Six Months Ended December 31,
	2020			2019
Cash flows from operating activities:
Net loss	$	(3,067,304	)	$	(2,617,863	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on foreign currency translation		(16,712	)		(129,050	)
Loss on investment in affiliate		135,692			-
Amortization of debt discount and issuance costs		-			138,209
Contingent beneficial conversion feature on convertible notes		905,948			-
Changes in operating assets and liabilities:
Other receivables		-			118,056
Other current assets		(39,486	)		72,939
Accounts payable		(52,644	)		(515,391	)
Accounts payable - related party		(1,337,672	)		2,458,158
Other long-term liabilities		17,947			-
Net cash used in operating activities		(3,454,231	)		(474,942	)

Cash flows from investing activities:
Net cash used in investing activities		-			-

Cash flows from financing activities:
Proceeds from issuance of warrants		3,812			-
Proceeds from warrant holders for common shares		10,200			-
Proceeds from issuance of preferred stock		3,294,745			648,750
Proceeds from initial public offering		21,600,013			-
Payment of equity issuance costs		(2,003,952	)		(116,402	)
Net cash provided by financing activities		22,904,818			532,348

Increase in cash and cash equivalents		19,450,587			57,406
Cash and cash equivalents, beginning of period		427,273			197,940
Cash and cash equivalents, end of period	$	19,877,860		$	255,346

Non-cash investing and financing activities
Reclassification of deferred charges to additional paid in capital upon completion of initial public offering	$	1,863,613		$	-
Conversion of notes to common shares at initial public offering		5,133,706			-
Conversion of preferred shares into common shares		28,102			-

Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	-		$	-
Cash paid for interest	$	166,740		$	170,198

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

GBS Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

NOTE 1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS

GBS Inc. and its wholly owned subsidiary, GBS Operations Inc. are formed under the laws of the state of Delaware, and were formed on December 5, 2016. Glucose Biosensor Systems (Greater China) Pty Ltd (“GBSPL”) was formed on August 4, 2016 under the laws of New South Wales, Australia and was renamed to GBS (APAC) Pty Ltd on October 14, 2020. Glucose Biosensor Systems (Japan) Pty Ltd and Glucose Biosensor Systems (APAC) Pty Ltd were formed under the laws of New South Wales, Australia on February 22, 2017 and February 23, 2017 respectively. These companies (collectively, the “Company” or “Group”) were formed to provide a non-invasive, pain free innovation to make it easier for people to manage diabetes using the Company’s Saliva Glucose Biosensor (“SGB” and, together with the software app that interfaces the SGB with the Company’s digital information system, the “SGT”).

GBS Inc, has 54.4% of its common stock owned of Life Science Biosensor Diagnostics Pty Ltd (“LSBD”), an Australian company that owns the worldwide intellectual property rights to the biosensor platform from University of Newcastle, Australia. LBSD has licensed to the Company that technology to introduce and launch the platform in the Asia-Pacific Region (“APAC”). We will commence this process with the SGT.

On May 29, 2020, a research agreement was executed between LSBD and the Wyss Institute for Biologically Inspired Engineering at Harvard University (Wyss). The Company is not a legal party to the agreement but is expecting to derive a benefit through the Technology Transfer Agreement executed with LSBD and the Company on June 23, 2020, further details which are provided below. The Company has transferred biosensors (research materials) to the Wyss Institute where its research and development scientists have commenced a pilot research program. Since the biosensor architecture is complete and given the pre-existing plans to develop immunology diagnostic tests, it is therefore relatively straightforward and expeditious to develop the SARS-CoV-2 test.

SARS-CoV-2 antibody testing in saliva can play a critically important role in large-scale ‘sero’-surveillance to address key public health priorities and guide policy and decision-making for COVID-19. It is anticipated that FDA review will be under the Emergency Use Authorization program, which means expedited time to market.

On June 23, 2020, The Company entered into a Technology Transfer Agreement global license with LSBD. The significant terms of the license agreement are:

●

The Company has the exclusive worldwide rights to a biosensor strip for antibodies against SARS-CoV-2 and associated application for reading devices to:

	○	act as the authorized party for the purpose of processing the application of, and obtaining any, regulatory approval for the Licensed Product, including being authorized to process the approval for an investigational device required for the purpose of carrying out clinical studies.
	○	manufacture, promote, market, import, offer, sell, and distribute the Licensed Products.
	○	provide reasonable customer support services on the use of the Licensed Products to end users of, and health care practitioners referring end users to, the Licensed Products.
	○	use the Licensed Products only for the purposes identified and permitted pursuant to regulatory approval; and
	○	collect data acquired from the Licensed Products

	●	The royalty rate is 13%, based upon mutually agreed sales projections on the net sales of the commercial units and dedicated reading devices. This serves as the minimum royalty and falls to 3% at the expiry of the relevant patent(s)
	●	Each additional year, the sales upon which the minimum royalty is calculated on is increased by the mutually agreed Expected Market Growth rate plus an Additional Growth Percentage rate up to 7% annually. The Additional Growth Percentage Rate is calculated and applied for 10 years
	●	In the event of a dispute, in relation to the expected market growth or additional percentage, the agreement provides for a dispute resolution by an independent third party.

There are no milestone payments.

Initial public offering

On December 28, 2020, the Company closed its initial public offering (“IPO”) and sold 1,270,589 units, consisting of (a) one share of the Company’s common stock (or, at the purchaser’s election, one share of Series B Convertible Preferred Stock), (b) one Series A warrant (the “Series A Warrants”) to purchase one share of the Company’s common stock at an exercise price equal to $8.50 per share, exercisable until the fifth anniversary of the issuance date, and (c) one Series B warrant (the “Series B Warrants”) to purchase one share of the Company’s common stock at an exercise price equal to $17.00 per share, exercisable until the fifth anniversary of the issuance date and subject to certain adjustment and cashless exercise provisions. The public offering price of the shares sold in the IPO was $17.00 per unit. In aggregate, the units issued in the offering generated $17,732,448 in net proceeds, which amount is net of $1,714,001 in underwriters’ discount and commissions, $2,153,564 in offering costs (including deferred equity offering cost of $1,863,612). Offering costs include underwriters’ warrants to acquire up to 63,529 shares with an exercise price of $18.70 per share, exercisable until the fifth anniversary of the issuance date. The Company also issued to the underwriter an option, exercisable one or more times in whole or in part, to purchase up to 190,588 additional shares of common stock and/or Series A Warrants to purchase up to an aggregate of 190,588 shares of common stock and/or Series B Warrants to purchase up to an aggregate of 190,588 shares of common stock, in any combinations thereof, from us at the public offering price per security, less the underwriting discounts and commissions, for 45 days after the date of the IPO to cover over-allotments, if any (the “Over-Allotment Option”).

Pre-IPO preferred shareholders were issued warrants following the Company’s completed IPO, that allows the holder to acquire 2,736,675 shares of common stock at the IPO price during year two through to year three following the completion of the IPO. At exercise date, the shareholder must hold, for each warrant to be exercised, the underlying common share to exercise the warrant. The warrants are not transferable and apply to the number of shares that were subscribed for.

NOTE 2. LIQUIDITY

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern (ASC 205-40) requires management to assess an entity’s ability to continue as a going concern within one year of the date of the financial statements are issued. In each reporting period, including interim periods, an entity is required to assess conditions known and reasonably knowable as of the financial statement issuance date to determine whether it is probable an entity will not meet its financial obligations within one year from the financial statement issuance date. Substantial doubt about an entity’s ability to continue as a going concern exists when conditions and events, considered in the aggregate, indicate it is probable the entity will be unable to meet its financial obligations as they become due within one year after the date the financial statements are issued.

The Company is an emerging growth company and has not generated any revenues to date. As such, the Company is subject to all of the risks associated with emerging growth companies. Since inception, the Company has incurred losses and negative cash flows from operating activities. The Company does not expect to generate positive cash flows from operating activities in the near future until such time, if at all, the Company completes the development process of its products, including regulatory approvals, and thereafter, begins to commercialize and achieve substantial acceptance in the marketplace for the first of a series of products in its medical device portfolio.

The Company incurred a net loss of $3,067,304 for the six months ended December 31, 2020 (Net loss $2,617,863 for the six months ended December 31, 2019). At December 31, 2020, the Company has shareholders’ equity of $18,782,015, working capital of $18,799,962, and an accumulated deficit of $(18,888,991).

On January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the novel coronavirus disease 2019 (“COVID-19”) outbreak a public health emergency of international concern and on March 12, 2020 the WHO announced the outbreak was a pandemic. The COVID-19 pandemic is having a negative impact on global markets and business activity, which has had a limited impact on our core business operations. However, due to the nature of our platform technology we are able to quickly adapt to this rapidly evolving environment. As part of the immunology modality of the biosensor platform, the parent company, Life Science Biosensor Diagnostics Pty Ltd (LSBD) executed an agreement on May 29, 2020 with the Wyss Institute for Biologically Inspired Engineering at Harvard University (Wyss) to use the biosensor platform to develop a COVID-19 rapid diagnostic test. The Company has the rights to the technology from this agreement under a Technology Transfer Agreement global license with LSBD entered into on June 23, 2020.

GBS Inc. is the global licensee and intends to commercialize COVID-19 diagnostic tests across the US, Europe, APAC and the rest of the world through appropriately qualified distributors.

In the near future, the Company anticipates incurring operating losses and does not expect to experience positive cash flows from operating activities and may continue to incur operating losses until it completes the development of its products and seeks regulatory approvals to market such products.

The Group’s consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities should the Group be unable to continue as a going concern.

As a result of the Company’s initial public offering (see Note 1), the Company believes it has sufficient working capital to finance its operations for the next twelve months as such these financial statements are prepared on the going concern basis.

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The results of operations for an interim period may not give a true indication of the results for the entire year. The June 30, 2020 consolidated balance sheet has been derived from the audited financial statements as of that date.

These condensed consolidated financial statements have been derived from, and should be read in conjunction with, the Company’s audited consolidated financial statements and notes thereto as of and for the year ended June 30, 2020 included in the Company’s Registration Statement on Form S-1, File No. 333-252277 on file with the U.S. Securities and Exchange Commission (the “SEC”). There have not been any significant changes to the Company’s significant accounting policies during the six months ended December 31, 2020.

Use of estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates.

Reclassifications

Certain reclassifications have been made to prior periods to conform to current period presentation as described below.

In the comparative period (FY 2020), management determined that certain transactions involving the issuance of shares of its subsidiary that occurred during the prior year should have resulted in an adjustment to non-controlling interest (“NCI”) and Additional Paid-in-Capital (“APIC”) to reflect the difference between the fair value of the consideration received and the book value of NCI involving these changes in ownership. As a result, the Company increased its prior year APIC with an offsetting reduction to NCI of $637,056. Management concluded that this reclassification was not meaningful to the Company’s financial position for the prior year, and as such, this change was recorded in the consolidated balance sheet and statement of shareholder’s equity in the first quarter of the comparative period (FY 2020) as an out-of-period adjustment.

Revenue recognition

Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by delivering the promised goods or service deliverables to the customers. A good or service deliverable is transferred to a customer when, or as, the customer obtains control of that good or service deliverable. The Company currently does not generate any revenue.

Foreign currency translation

Assets and liabilities of foreign subsidiaries are translated from local (functional) currency to presentation currency (U.S. dollar) at the rate of exchange in effect on the consolidated balance sheets date; income and expenses are translated at the average rate of exchange prevailing during the year. The functional currency of GBS Inc is the United States dollar. Foreign currency movements resulted in a gain/(loss) of $33,856 and ($16,712) for the three and six months ended December 31, 2020, respectively ($133,286) and ($129,050) for the three and six months ended December 31, 2019, respectively.

Income taxes

In accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes, tax positions initially need to be recognized in the consolidated financial statements when it is more likely than not that the positions will be sustained upon examination by taxing authorities. It also provides guidance for de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

As of December 31, 2020, the Group had no uncertain tax positions that qualified for either recognition or disclosure in the consolidated financial statements. Additionally, the Group had no interest and penalties related to income taxes.

The Group accounts for current and deferred income taxes and, when appropriate, deferred tax assets and liabilities are recorded with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of all available evidence, it is more likely than not that some amount of the recorded deferred tax assets will not be realized, a valuation allowance is established for that amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized.

Debt issuance cost

Debt issuance costs are amortized using the effective interest rate method over the term of the loan and the amortization expense is recorded as part of interest expense of the consolidated statements of operations.

Licensing rights

During the first quarter of the FY ended 30 June 2020, the Company had purchased the license right procurement assets from Life Science Biosensor Diagnostics Pty Ltd for an amount of $976,308 (June 30, 2019: $ nil) in relation to the development and approval process for the Glucose Biosensor Technology. The Company recorded the license at the historical carrying value in the books of LSBD which was $ nil and recorded the amount paid as a deemed dividend. The Company has agreed to pay royalties of sales & milestones payments as defined.

On July 3, 2019, the Company entered into an amended and restated license agreement. There is no set expiration date for the license. However, the exclusivity of the license granted under the license agreement runs until the expiration of the patent portfolio covered by the agreement which is currently until 2033. No royalties have been incurred through to December 31, 2020 (December 31, 2019: $ nil).

Research and development costs

Research and development costs are expensed as incurred.

Net loss per share attributable to common shareholders (“EPS”)

The Company calculates earnings per share attributable to common shareholders in accordance with ASC Topic 260, “Earning Per Share.” Basic net income (loss) per share attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common shareholders by weighted-average common shares outstanding during the period plus potentially dilutive common shares, such as share warrants.

Potentially dilutive common shares shall be calculated in accordance with the treasury share method, which assumes that proceeds from the exercise of all warrants are used to repurchase common share at market value. The number of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities.

As the Company has incurred net losses in all periods, certain potentially dilutive securities, including convertible preferred stock, warrants to acquire common stock, and convertible notes payable have been excluded in the computation of diluted loss per share as the effects are antidilutive.

Recently issued but not yet effective accounting pronouncements

As the Company is an emerging growth company, it has elected to defer the adoption of new accounting pronouncements until they would apply to private companies.

In August 2020, the FASB issued ASU 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. Also, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and treasury stock method will be no longer available. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company does not intend to early adopt and continues to evaluate the impact of the provisions of ASU 2020-06 on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). This update requires all leases with a term greater than 12 months to be recognized on the balance sheet through a right-of-use asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for fiscal years beginning after December 15, 2021, and interim period within fiscal years beginning after December 15, 2022 as amended by ASU 2020-05 with early adoption permitted. The Company has not early adopted the standard.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects of the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company has not early adopted the standard.

Concentration of credit risk

The Company places its cash and cash equivalents, which may at times be in excess of the Australia Financial Claims Scheme or the United States’ Federal Deposit Insurance Corporation insurance limits, with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution.

Related parties

The Company has related party transactions with its parent LSBD. See Notes 7 and 8.

Fair value of financial instruments

The carrying value of financial instruments classified as current assets and current liabilities approximate fair value due to their liquidity and short-term nature.

NOTE 4. OTHER CURRENT ASSETS

	December 31, 2020		June 30, 2020
Goods and services tax receivable	$	77,710	$	7,509
Prepayments		1,596		29,469
Other receivables		9,242		12,084
Total	$	88,548	$	49,062

NOTE 5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

	December 31, 2020		June 30, 2020
Accounts and other payables	$	595,549	$	483,576
Accruals		29,051		56,894
Employee liabilities (current and non-current)		128,172		246,999
Total	$	752,772	$	787,469

NOTE 6. CONVERTIBLE NOTES PAYABLE

The Company’s previously outstanding notes mandatorily converted, at a conversion price equal to 85% of 50% of the unit offering price of the IPO (or $7.23), for an aggregate of 710,548 shares based on $5,133,706 of principal and zero accrued interest outstanding at the date of conversion.

The convertible notes had a contingent Beneficial Conversion Features (BCF), with the contingency being the event of IPO. As such, a financing cost of $905,948 was recognized as interest expense in the consolidated statements of operations and other comprehensive loss in relation to this contingent BCF during the three and six months ended December 31, 2020.

NOTE 7. SHAREHOLDERS’ EQUITY

December 2020 Transactions

On December 14, 2020, the Company agreed to issue to LSBD, in consideration of LSBD’s contribution towards the research and development of applications other than glucose and COVID-19 applications to a maximum of $2 million over a 5-year period, a 5-year non-transferable warrant to purchase 3,000,000 shares of the Company’s common stock at the exercise price of $17.00 per share. As this was a transaction between entities under common control, the $2 million receivable due from LSBD has been recognized as contra-equity.

On December 18, 2020, the Company entered into an Exchange Agreement (the “EA”) with LSBD to exchange 3,000,000 shares of its common stock held by LSBD for 3,000,000 shares of the Company’s Series B Convertible Preferred Stock (“Exchange”). In addition, the parties to the Exchange Agreement entered into a Registration Rights Agreement (the “RRA”) pursuant to which the Company agreed to prepare and file within 30 days following the closing of the IPO with the Securities and Exchange Commission a registration statement to register for resale the shares of Common Stock issuable upon conversion of the Series B Convertible Preferred Stock. If and to the extent the Company fails to, among other things, file such resale registration statement or have it declared effective as required under the terms of the RRA, the Company will be required to pay to the holder of such registration rights partial liquidated damages payable in cash in the amount equal to the product of 1.0% multiplied by the aggregate purchase price paid by such holder pursuant to the EA. The EA and the RRA contain customary representations, warranties, agreements and, indemnification rights and obligations of the parties. The common stock acquired in the Exchange was immediately retired. Each share of Series B Convertible Preferred Stock is convertible into 1 shares of the Company’s common stock, subject to proportional adjustment and beneficial ownership limitations. In the event of the Company’s liquidation, dissolution or winding up, holders of Series B Convertible Preferred Stock will participate pari passu with any distribution of proceeds to holders of the Company’s common stock. Holders of Series B Convertible Preferred Stock are entitled to receive dividends on shares of Series B Preferred equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on the Company’s common stock. Shares of Series B Convertible Preferred Stock generally have no voting rights, except as required by law.

Initial public offering

In December 2020, the Company completed its initial public offering. See Note 1.

NOTE 8. RELATED-PARTY TRANSACTIONS

In December 2020, the Company completed certain financing transactions with its Parent, LSBD as described in Note 7.

Sales to and purchases from related parties are made in arm’s length transactions both at normal market prices and on normal commercial terms. The following transactions occurred with LSBD during the period July 1, 2020 to December 31, 2020 (FY2020: July 1, 2019 to December 31, 2019):

The Company incurred a total of $nil (FY2020: $599,848) towards the services in connection with development and regulatory approval pathway for the technology, including payments made or expenses incurred on behalf of the Company.

The Company incurred a total of $nil (FY2020: $730,148) towards overhead cost reimbursement which includes salaries, rents and other related overheads directly attributable to the company which are included in general and administration expenses.

The Company recognized income of $nil (FY2020: $121,277) in relation to shared labor reimbursement which includes salaries directly attributable to the company which are included in shared-services revenue.

NOTE 9. INVESTMENT IN AFFILIATE

On May 29, 2020 the parent Company, Life Science Biosensor Diagnostics Pty Ltd, issued 14,000,000 common shares of BiosensX (North America) Inc. to the Company at par value of $0.001 per share. This transaction provided the Company with a 50% interest in BiosensX (North America) Inc., the holder of the technology license for the North America region.

The investment in BiosensX (North America) Inc. is accounted for by use of the equity method in accordance with ASC 323 Investments - Equity Method and Joint Ventures.

Life Science Biosensor Diagnostics Pty Ltd is the parent of both the Company and BiosensX (North America), the transfer of BiosensX shares to the Company was deemed to be a common control transaction. As a result of the share transfer, the Company has significant influence over BiosensX (North America) Inc. but in accordance with ASC 810 Consolidation Life Science Biosensor Diagnostics is deemed to have control over BiosensX (North America) Inc. due to its direct ownership of 50% in BiosensX (North America) Inc. and indirect ownership of 50% in BiosensX (North America) Inc. through GBS Inc.

The following table summarizes the amount recorded in the consolidated financial statements:

	December 31, 2020			June 30, 2020

Investment value	$	135,692		$	14,000
(Loss) income from the affiliate		(135,692	)		121,692
Carrying amount	$	-		$	135,692

NOTE 10. COMMITMENTS AND CONTINGENCIES

The Company has no material future minimum lease commitments or purchase commitments.

From time to time, the Company is party to various legal proceedings arising in the ordinary course of business. Based on information currently available, the Company is not involved in any pending or threatened legal proceedings that it believes could reasonably be expected to have a material adverse effect on its financial condition, results of operations or liquidity. However, legal matters are inherently uncertain, and the Company cannot guarantee that the outcome of any legal matter will be favorable to the Company.

NOTE 11. LOSS PER SHARE

Basic loss per common share is computed by dividing net loss allocable to common stockholders by the weighted average number of shares of common stock or common stock equivalents outstanding. Diluted loss per common share is computed similar to basic loss per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock.

	Three Months Ended						Six Months Ended
	December 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019

Net loss attributable to GBS, Inc.	$	(1,983,964	)	$	(1,836,318	)	$	(3,056,474	)	$	(2,594,168	)
Basic and diluted net loss per share attributed to common shareholders	$	(0.23	)	$	(0.22	)	$	(0.35	)	$	(0.30	)
Weighted-average number of ordinary shares		8,622,724			8,510,000			8,626,362			8,510,000

The following outstanding warrants, options and preferred shares were excluded from the computation of diluted net loss per share for the periods presented because their effect would have been anti-dilutive:

Anti-dilutive warrants and preferred shares:

	Three Months Ended				Six Months Ended
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Warrants - Series A		1,459,977		-		1,459,977		-
Warrants - Series B		1,461,177		-		1,461,177		-
Warrants issued to underwriters		63,529		-		63,529		-
Pre IPO warrants		2,736,675		2,250,376		2,736,675		2,250,376
Warrants issued to parent entity		3,000,000		-		3,000,000		-
Preferred stock - Series A		-		2,323,891		-		2,323,891
Preferred stock - Series B		3,000,000		-		3,000,000		-

NOTE 12. SUBSEQUENT EVENTS

Subsequent to December 31, 2020, the Company received $502,350 in relation to the exercise of 59,100 Series A Warrants to purchase one share of Common Stock per Warrant at an exercise price $ 8.50. As of February 11, 2021, a total of 1,402,077 Series A warrants remain outstanding.

Subsequent to December 31, 2020 a total of 1,364,495 Series B Warrants were exercised to purchase one Common Stock per Warrants in a cashless exercise provision as described in Company’s Registration Statement on Form S-1, File No. 333-252277 on file with the U.S. Securities and Exchange Commission (the “SEC”). As of February 11, 2021, a total of 66,382 Series B remain outstanding.

On January 5, 2021, the Company entered into a certain Research Collaboration Agreement with Harvard College for the purposes of facilitating mutual collaboration in scientific research in connection with the Company’s non-exclusive royalty free license to combat COVID-19 coronavirus. The contemplated collaboration includes research teams from the Company and Harvard and will include, among others, exchange of materials and research data, to now progress with the milestone of integrating the Harvard technology with the Company’s biosensor with applications for SARS-Cov-2 antibody test for COVID-19. The Company agreed to pay Harvard a total amount of $609,375 payable in 3 instalments, with $304,687.50 payable upon receipt of the initial invoice, and two additional payments of $152,343.75 each, upon 90 and 180 day anniversary following the date of the agreement. For additional details refer to form 8-k on January 8, 2021.

Item 2. Management’s Discussion and Analysis of Financial Condition and Result of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q. This discussion and other parts of this report contain forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions, that are based on the beliefs of our management, as well as assumptions made by, and information currently available to, our management. Our actual results could differ materially from those discussed in these forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, and while we believe such information forms a reasonable basis for such.

Overview

We are a biosensor diagnostic technology company developing our COV2 test and across the Asia-Pacific region (“APAC”) and a biosensor platform comprising of biochemistry, immunology, tumour markers, hormones, and nucleic acid diagnostic modalities. We were incorporated under the laws of Delaware on December 5, 2016. Our headquarter is in New York. We were formed to provide a non-invasive, pain free innovation to make it easier for people to manage diabetes using the Company’s Saliva Glucose Biosensor (“SGB” and, together with the software app that interfaces the SGB with the Company’s digital information system, the “SGT”)

We currently have 54.4% of our common stock owned by Life Science Biosensor Diagnostics Pty Ltd (“LSBD”). an Australian company that owns the worldwide intellectual property rights to the biosensor platform from University of Newcastle, Australia. LSBD has licensed to us that technology for us to introduce and launch the platform in the APAC Region. We will commence this process with the SGT.

Our objective is to introduce and launch a COV2 test globally and then the SGB, the second of our diagnostic tests that stem from the Biosensor Platform that we license, in the APAC Region. In the next four years we intend on developing the platform to its full capacity testing across the following diagnostic modalities: immunology, hormones, chemistry, tumour markers and nucleic acid tests.

We believe that the COVID-19 pandemic is likely to remain with us for many decades. Development of an improved antibody assays to detect prior infection with SARS-CoV-2 has been identified as one of the top unmet needs in the ongoing COVID-19 pandemic response. Precise knowledge of SARS-CoV-2 infection at the individual level can potentially inform clinical decision-making, whereas at the population level, precise knowledge of prior infection, immunity, and attack rates (particularly asymptomatic infection) is needed to prioritize risk management decision-making about social distancing, treatments, and vaccination. If saliva can support measurements of both the presence of SARS-CoV-2 RNA26-28 as well as antibodies against SARS-CoV-2, this sample type could provide an important opportunity to monitor individual and population-level SARS-CoV-2 transmission, infection, and immunity dynamics over place and time.

We anticipate there to be 3 different applications for the foreseeable future:

1.	Population Screening - SARS-CoV-2 antibody testing is urgently needed to estimate the incidence and prevalence of SARS-CoV-2 infection at the general population level. Precise knowledge of population immunity could allow government bodies to make informed decisions about how and when to relax stay-at-home directives and to reopen the economy.
2.	Diagnosis – The COV2 Biosensor test can be used as a complement to the (RNA) virus detection tests for patients presenting late after symptoms onset to healthcare facilities and where virus detection tests are negative despite strong indications of infection. In addition, they can potentially be used for informing the decision on discharge of patients who recovered from SARS-CoV-2 infection but remain RNA-positive by RT-PCR for a long time after symptoms have subsided. The degree of protective immunity conferred by or correlated with the antibodies detected in subjects with past SARS-CoV-2 infection is still under investigation. Once this is clarified, the COV 2 antibody tests could be, together with the (RNA) direct virus detection, an essential tool in de-escalation strategies. Currently antibody tests are used for sero-epidemiological surveys and studies.
3.	Post vaccination screening - To assess the degree of the elicited potent antigen-specific antibody responses, to COV2 vaccines when developed and administered to humans.

Based on a recent paper publicly available and authored by the team at Johns Hopkins Department of Environmental Health and Engineering, Bloomberg School of Public Health, results indicate it is feasible to accurately measure the salivary IgG response to identify individuals with a prior SARS-CoV-2 infection. A saliva-based approach could serve as a non-invasive approach for accurate and large-scale SARS-CoV-2 “sero”-surveillance.

A saliva antibody test can greatly increase the scale of testing—particularly among susceptible populations—compared to blood and could clarify population immunity and susceptibility to SARS-CoV-2. The team at John Hopkins further demonstrated in the laboratory that when saliva was collected ≥10 days post symptom onset, the anti-SARS-CoV-2 IgG assay detects SARS-CoV-2 infection with 100% sensitivity and 99% specificity. In addition, the team demonstrated that the temporal kinetics of SARS CoV-2-specific IgG responses in saliva are consistent with those observed in serum and indicate that most individuals seroconvert approximately 10 days after COVID-19 symptom onset or approximately two weeks post-presumed infection.

By utilizing the biosensor platform for detecting COV2 we expect to have lower detection limits, improve on sensitivity and specificity characteristics of current diagnostic methods, be able to provide real time results at the point of care and provide quantitative results as opposed to negative or positive which is how other POCT report the results.

Accurate and scalable point-of-care (POC) tests for the diagnosis of COVID-19 would increase the scope for diagnosis to be made in the community and outside the laboratory setting They would have the potential to reduce the time to obtaining an actionable result, could support early identification of those with COVID-19 and could also support appropriate use of isolation resources, infection control measures, and recruitment into clinical trials of treatments.

We are progressing with the milestone of integrating Harvard University’s technology with our biosensor applications for SARS-Cov-2 antibody test for COVID-19 by entering on January 5, into a Research Collaboration Agreement with Harvard College for the purposes of facilitating mutual collaboration in scientific research in connection with the Company’s non-exclusive royalty free license to combat COVID-19 coronavirus. The contemplated collaboration includes research teams from the Company and Harvard and will include, among others, exchange of materials and research data.

Our Company has not generated any revenues to date. As such, the Company is subject to all of the risks associated with emerging growth companies. Since inception, the Company has incurred losses and negative cash flows from operating activities. The Company does not expect to generate positive cash flows from operating activities in the near future until such time, if at all, the Company completes the development process of its products, including regulatory approvals, and thereafter, begins to commercialize and achieve substantial acceptance in the marketplace for the first of a series of products in its medical device portfolio.

Recent Developments

December 2020 Transactions

On December 18, 2020, LSBD entered into a certain Purchase and Assignment Agreement (the “PAA”) with an institutional accredited investor (the “Purchaser”) pursuant to which LSBD sold and assigned to the Purchaser 3,000,000 shares of the Series B Convertible Preferred Stock and assigned to the Purchaser its rights under the EA and the RRA with respect to the such preferred shares for a total purchase price of $2,000,000. The investor’s Series B Convertible Preferred Stock is convertible into 3,000,000 shares of the Company’s common stock, subject to beneficial ownership limitation.

On January 21, 2021, we filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission to register the resale of the shares issuable upon conversion of the Series B Convertible Preferred Stock.

Initial public offering

On December 28, 2020, the Company closed its initial public offering (“IPO”) and sold 1,270,589 units, consisting of (a) one share of the Company’s common stock (or, at the purchaser’s election, one share of Series B Convertible Preferred Stock), (b) one Series A warrant (the “Series A Warrants”) to purchase one share of the Company’s common stock at an exercise price equal to $8.50 per share, exercisable until the fifth anniversary of the issuance date, and (c) one Series B warrant (the “Series B Warrants”) to purchase one share of the Company’s common stock at an exercise price equal to $17.00 per share, exercisable until the fifth anniversary of the issuance date and subject to certain adjustment and cashless exercise provisions. The public offering price of the shares sold in the IPO was $17.00 per unit. In aggregate, the units issued in the offering generated $17,732,448 in net proceeds, which amount is net of $1,714,001 in underwriters’ discount and commissions, and $2,153,564 in offering costs (including deferred equity offering cost of $1,863,612). The Company also issued to the underwriter an option, exercisable one or more times in whole or in part, to purchase up to 190,588 additional shares of common stock and/or Series A Warrants to purchase up to an aggregate of 190,588 shares of common stock and/or Series B Warrants to purchase up to an aggregate of 190,588 shares of common stock, in any combinations thereof, from us at the public offering price per security, less the underwriting discounts and commissions, for 45 days after the date of the IPO to cover over-allotments, if any (the “Over-Allotment Option”).

Certain of the preferred shareholders were issued warrants that, following the Company’s completed IPO, allow the holder to acquire 2,736,675 shares of common stock at the IPO price during years two through three following the IPO. At exercise date, the shareholder must hold for each warrant to be exercised, one underlying common share to exercise the option. The warrants are not transferable and apply to the number of shares that were subscribed for.

Results of Operations:

Comparison of the Three and Six Months Ended December 31, 2020 and 2019

Revenue

Government support income

Government support income increased by $283,037 to $283,037 from $0 for the three months ended December 31, 2020 compared to same period in 2019. This increase was primarily attributable to GBS Inc and its subsidiary companies receiving Research and Development tax incentives and other COVID-19 related government support in the current period where the companies are located. The purpose of the grant is to support companies in managing its business and payroll costs.

Government support income increased by $338,464 to $338,464 from $0 for the six months ended December 31, 2020 compared to same period in 2019. This increase was primarily attributable to GBS Inc and its subsidiary companies receiving Research and Development tax incentives and other COVID-19 related government support in the current period where the companies are located. The purpose of the grant is to support companies in managing its business and payroll costs.

Shared service

Shared service revenue was $0 and ($798) for the three months ended December 31, 2020 and 2019, respectively, and $0 and $121,277 for the six months ended December 31, 2020 and 2019, respectively. Shared service revenue is mainly attributable to the recovery of costs from entities owned by its parent. There were no shared services in the current period.

Operating expenses

General and administrative expenses

General and administrative expenses decreased by $300,562 to $671,450 from $972,012 for the three months ended December 31, 2020 compared to the same period in 2019. This decrease was attributable to reduction of expenditures whilst completing the IPO and planning for the milestones to be achieved after the IPO.

General and administrative expenses decreased by $505,887 to $1,192,453 from $1,698,340 for the six months ended December 31, 2020 compared to the same period in 2019. This decrease was also attributable to the limitation of expenditures whilst completing the IPO and planning for the milestones to be achieved after the IPO.

As the Company’s operating activities increase, we expect its general and administrative costs will include additional cost in overhead contribution, consultancy, and travel expenses.

Development and regulatory expenses

Development and regulatory expenses decreased by $152,847 to $341,820 from $494,667 for the three months ended December 31, 2020 compared to the same period in 2019. This decrease was attributable to limitation of expenditure on such activities until the funding had been secured by the IPO. The Company is now in a position to progress on its milestones.

Development and regulatory expenses decreased by $227,090 to $372,758 from $599,848 for the six months ended December 31, 2020 compared to the same period in 2019. This decrease was again attributable to limitation of expenditure on such activities until the funding had been secured by the IPO. The Company is now in a position to progress on its milestones.

As the Company’s operating activities increase, we expect its development and regulatory expenses to increase in future periods.

Prospectus and capital raising expenses

Prospectus and capital raising expenses decreased by $49,345 to $187,093 from $236,438 for the three months ended December 31, 2020 as compared to the same period in 2019. This decrease was attributable to fewer expenditures required by us in the current period being in the final stages of completing our IPO.

Prospectus and capital raising expenses increased by $211,209 to $353,574 from $142,365 for the six months ended December 31, 2020 as compared to the same period in 2019, respectively. This increase was attributable to credit notes received from some suppliers in the first quarter of the previous period.

Other income and expenses

Interest expense

Interest expense increased $837,715 to $986,860 from $149,145 for the three months ended December 31, 2020 as compared to the same period in 2019. This increase was attributable to the non-cash recognition of a beneficial conversion feature associated with convertible notes.

Interest expense increased $774,032 to $1,072,688 from $298,656 for the six months ended December 31, 2020 as compared to the same period in 2019. This increase was also attributable to the non-cash recognition of a beneficial conversion feature associated with convertible notes.

Loss from unconsolidated equity method investment

Loss from unconsolidated equity method investment was $0 for the three months ended December 31, 2020 and 2019, respectively.

Loss from unconsolidated equity method investment increased $135,692 from $0 for the six months ended December 31, 2020 compared to the same period in 2019. This increase was attributable to the reduction in the carrying amount of its investment in BiosensX (North America) Inc.

Realized foreign exchange loss

Realized foreign exchange loss increased $86,637 from $0 for the three months ended December 31, 2020 compared to the same period in 2019. This increase was attributable to the unfavourable foreign exchange translations on capital raisings from AUD to USD.

Realized foreign exchange loss increased $279,107 from $0 for the six months ended December 31, 2020 compared to the same period in 2019. This increase was attributable to the unfavourable foreign exchange translations on capital raisings from AUD to USD.

Income tax (expense) benefit

Income tax expense was $0 for the three and six months ended December 31, 2020 and 2019 as the Company has established a full valuation allowance for all of its deferred tax assets

Other comprehensive income

Foreign currency translation gain/(loss)

Unrealized foreign currency translation gain/(loss) increased by $167,142 to $33,856 from ($133,286) for the three months ended December 31, 2020 as compared to the same period in 2019. It is calculated based on the Company’s unsettled transactions in currencies other than its functional currency.

Unrealized foreign currency translation gain/(loss) increased by $112,338 to ($16,712) from ($129,050) for the six months ended December 31, 2020 and 2019, respectively. It is calculated based on the Company’s unsettled transactions in currencies other than its functional currency.

Net loss

Net loss increased by $137,356 to $1,990,389 from $1,853,033 for the three months ended December 31, 2020 compared to the same period in 2019. This overall increase was largely attributable to the non-cash recognition of a beneficial conversion feature, partially offset by government support income and the limitation of expenditure on general and administrative expenses until funding had been secured by the IPO, and the company was in a position to progress on its regulatory and development milestones.

Net loss increased by $449,441 to $3,067,304 from $2,617,863 for the six months ended December 31, 2020 compared to the same period in 2019. This overall increase was largely attributable to the non-cash recognition of a beneficial conversion feature, partially offset by government support income and the limitation of expenditure on general and administrative expenses until funding had been secured by the IPO, and the company was in a position to progress on its regulatory and development milestones.

Liquidity and Capital Resources

Since our inception, our operations have primarily been financed through the issuance of our common stock, redeemable convertible preferred stock and the incurrence of debt. As of December 31, 2020, we had $19,877,860 in cash and cash equivalents and $18,799,962 in working capital.

See “Initial public offering” herein for details about our IPO.

According to our management’s estimates, based on our budget and proposed schedules of development, approvals and organization, we believe, although there can be no assurances, that after our IPO we will have sufficient capital resources to enable us to continue to implement our business plan and remain in operation for at least 30 months. During this time, we expect to use the net proceeds available to us for the following purposes:

	●	to obtain regulatory approvals and establish manufacturing capacities necessary for marketing of the SGT;

	●	to market the SGT and establish a distribution network in the APAC Region; and

	●	for working capital and general corporate purposes.

We do not anticipate generating any revenue until after 6-10 months following the date of this filing, if at all, and our revenues will not immediately be sufficient to finance our ongoing operations. In addition, available resources may be consumed more rapidly than currently anticipated, and there can be no assurance that we will be successful in developing the SGT and generating sufficient revenue in the timeframe set forth above, or at all. We may be unable to meet our targets for regulatory approval and market launch, or we may be unable to generate anticipated amounts of revenue from sales of the system. We may also need additional funding for developing new products and services and for additional sales, marketing and promotional activities. Should this occur, we may need to seek additional capital earlier than anticipated.

In the event we require additional capital, there can be no assurances that we will be able to raise such capital on acceptable terms, or at all. Failure to generate sufficient revenues or raise additional capital through debt or equity financings, or through collaboration agreements, strategic alliances or marketing and distribution arrangements, could have a material adverse effect on our ability to meet our long-term liquidity needs and achieve our intended long-term business plan. Our failure to obtain such funding when needed could create a negative impact on our stock price or could potentially lead to a reduction in our operations or the failure of our company.

Contractual Obligations

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Extended Transition Period for “Emerging Growth Companies”

We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. Because our financial statements may not be comparable to companies that comply with public company effective dates, investors may have difficulty evaluating or comparing our business, performance or prospects in comparison to other public companies, which may have a negative impact on the value and liquidity of our common stock.

Off-Balance Sheet Arrangements

Through December 31, 2020, we have not entered into any off-balance sheet arrangements as defined by applicable SEC regulations.

Critical Accounting Policies, Significant Judgments and Use of Estimates

Our financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe that the accounting policies discussed below are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management’s judgments and estimates.

Our critical accounting policies are described under the notes to the unaudited condensed consolidated financial statements included in “Part I, Item 1 — Financial Statements” of this Quarterly Report on Form 10-Q. During the six months ended December 31, 2020, except as described in Note 3 to the unaudited interim condensed financial statements appearing elsewhere in this Quarterly Report on Form 10-Q, there were no material changes to our critical accounting policies from those discussed in our final prospectus filed on December 18, 2020.

Recent Accounting Pronouncements

See “Recent Accounting Pronouncements” in Note 3 to our consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q, and have concluded that, based on such evaluation, our disclosure controls and procedures were effective as of December 31, 2020 to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the three months ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitation on the Effectiveness of Internal Controls

The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, in designing and evaluating the disclosure controls and procedures, management recognizes that any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business, but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may be subject to legal proceedings and claims arising in the ordinary course of business. We are not currently engaged in any material legal proceedings.

Item 1a. Risk Factors

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(b) On December 28, 2020, the Company closed its initial public offering (“IPO”) and sold 1,270,589 units, consisting of (a) one share of the Company’s common stock (or, at the purchaser’s election, one share of Series B Convertible Preferred Stock), (b) one Series A warrant (the “Series A Warrants”) to purchase one share of the Company’s common stock at an exercise price equal to $8.50 per share, exercisable until the fifth anniversary of the issuance date, and (c) one Series B warrant (the “Series B Warrants”) to purchase one share of the Company’s common stock at an exercise price equal to $17.00 per share, exercisable until the fifth anniversary of the issuance date and subject to certain adjustment and cashless exercise provisions. The public offering price of the shares sold in the IPO was $17.00 per unit. In aggregate, the units issued in the offering generated $17,732,448 in net proceeds, which amount is net of $1,714,001 in underwriters’ discount and commissions, and $2,153,564 in offering costs (including deferred equity offering cost of $1,863,612). The Company also issued to the underwriter an option, exercisable one or more times in whole or in part, to purchase up to 190,588 additional shares of common stock and/or Series A Warrants to purchase up to an aggregate of 190,588 shares of common stock and/or Series B Warrants to purchase up to an aggregate of 190,588 shares of common stock, in any combinations thereof, from us at the public offering price per security, less the underwriting discounts and commissions, for 45 days after the date of the IPO to cover over-allotments, if any (the “Over-Allotment Option”).

Upon the closing of the IPO, all shares of preferred stock then outstanding were automatically converted into 2,810,190 shares of common stock, and all convertible notes then outstanding were automatically converted into 710,548 shares of common stock. Certain of the preferred shareholders were issued warrants that, following the Company’s completed IPO, allow the holder to acquire 2,736,675 shares of common stock at the IPO price during years two through three following the IPO. At exercise date, the shareholder must hold for each warrant to be exercised, one underlying common share to exercise the option. The warrants are not transferable and apply to the number of shares that were subscribed for.

There has been no material change in the planned use of proceeds from our IPO as described in our final prospectus filed with the SEC on December 28, 2020 pursuant to Rule 424(b). No direct or indirect payments were made by us to any of our directors or officers or their associates, to persons owning ten percent or more of our common stock or to their associates, or to our affiliates, other than payments in the ordinary course of business to officers for salaries. Pending the uses described, we intend to invest the net proceeds in short-term, interest-bearing obligations, investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Not applicable.

Item 6. Exhibits.

Exhibit No.		Description

31.1		Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.

31.2		Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.

32.1		Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		XBRL Instance Document.

101.SCH		XBRL Taxonomy Extension Schema Document.

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		XBRL Taxonomy Extension Label Linkbase Document.

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GBS Inc.

Date: February 11, 2021	By:	/s/ HARRY SIMEONIDIS
		HARRY SIMEONIDIS
		CHIEF EXECUTIVE OFFICER AND PRESIDENT
		(Principal Executive Officer)

Date: February 11, 2021	By:	/s/ SPIRO SAKIRIS
		SPIRO SAKIRIS
		CHIEF FINANCIAL OFFICER
		(Principal Financial Officer)

EX-31.1 2 ex31-1.htm

Exhibit 31.1

OFFICER’S CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Harry Simeonidis, certify that:

	1.	I have reviewed this Quarterly Report on Form 10-Q of GBS, Inc.;

	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made not misleading with respect to the period covered by this report;

	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

	4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

February 11, 2021

By:	/s/ Harry Simeonidis
	Harry Simeonidis, Chief Executive Officer
	(Principal Executive Officer)

EX-31.2 3 ex31-2.htm

Exhibit 31.2

OFFICER’S CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Spiro Sakiris, certify that:

	1.	I have reviewed this Quarterly Report on Form 10-Q of GBS, Inc.;

	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made not misleading with respect to the period covered by this report;

	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

	4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	e.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	f.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	g.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	h.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

February 11, 2021

By:	/s/ Spiro Sakiris
	Spiro Sakiris, Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-32.1 4 ex32-1.htm

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended December 31, 2020 of GBS, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Harry Simeonidis, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	●	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m or 78o(d)); and
	●	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 11, 2021

By:	/s/ Harry Simeonidis
	Harry Simeonidis
	Chief Executive Officer
	(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to GBS, Inc. and will be retained by GBS, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2 5 ex32-2.htm

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended December 31, 2020 of GBS, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Spiro Sakiris, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	●	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m or 78o(d)); and
	●	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 11, 2021

By:	/s/ Spiro Sakiris
	Spiro Sakiris
	Chief Financial and Accounting Officer
	(Principal Executive Officer)

EX-101.INS 6 gbs-20201231.xml XBRL INSTANCE FILE 0001725430 2020-07-01 2020-12-31 0001725430 2019-07-01 2019-12-31 0001725430 2020-12-31 0001725430 GBS:TechnologyTransferAgreementGlobalLicenseMember GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember 2020-06-22 2020-06-23 0001725430 GBS:TechnologyTransferAgreementGlobalLicenseMember GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember 2020-06-23 0001725430 GBS:TechnologyTransferAgreementGlobalLicenseMember GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember srt:MaximumMember 2020-06-23 0001725430 GBS:TechnologyTransferAgreementGlobalLicenseMember GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember srt:MinimumMember 2020-06-23 0001725430 us-gaap:IPOMember 2020-12-27 2020-12-28 0001725430 us-gaap:IPOMember us-gaap:CommonStockMember 2020-12-28 0001725430 us-gaap:IPOMember GBS:SeriesBConvertiblePreferredStockAndSeriesAWarrantMember us-gaap:CommonStockMember 2020-12-28 0001725430 us-gaap:IPOMember GBS:SeriesBWarrantMember us-gaap:CommonStockMember 2020-12-28 0001725430 2020-12-27 2020-12-28 0001725430 us-gaap:IPOMember us-gaap:CommonStockMember 2020-12-27 2020-12-28 0001725430 us-gaap:IPOMember us-gaap:CommonStockMember GBS:YearTwoMember 2020-12-27 2020-12-28 0001725430 us-gaap:IPOMember us-gaap:CommonStockMember GBS:YearThreeMember 2020-12-27 2020-12-28 0001725430 2020-10-01 2020-12-31 0001725430 2019-10-01 2019-12-31 0001725430 2019-07-01 2020-06-30 0001725430 2018-07-01 2019-06-30 0001725430 2020-06-30 0001725430 GBS:ConvertibleNoteMember GBS:GlucoseBiosensorSystemsMember 2020-12-31 0001725430 GBS:ConvertibleNoteMember GBS:GlucoseBiosensorSystemsMember 2020-07-01 2020-12-31 0001725430 GBS:ConvertibleNoteMember GBS:GlucoseBiosensorSystemsMember srt:MinimumMember 2020-07-01 2020-12-31 0001725430 GBS:ConvertibleNoteMember GBS:GlucoseBiosensorSystemsMember srt:MaximumMember 2020-07-01 2020-12-31 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember srt:MaximumMember 2020-12-13 2020-12-14 0001725430 GBS:FiveYearNonTransferrableWarrantMember GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember us-gaap:CommonStockMember 2020-12-14 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember us-gaap:CommonStockMember GBS:ExchangeAgreementMember 2020-12-17 2020-12-18 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember GBS:SeriesBConvertiblePreferredStockMember GBS:ExchangeAgreementMember 2020-12-17 2020-12-18 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember GBS:ExchangeAgreementMember 2020-12-17 2020-12-18 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember 2020-12-31 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember GBS:BiosensXMember 2020-05-29 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember GBS:BiosensXMember 2020-05-29 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember GBS:BiosensXMember 2020-05-28 2020-05-29 0001725430 2020-04-01 2020-06-30 0001725430 2020-01-01 2020-06-30 0001725430 GBS:WarrantsSeriesAMember 2020-10-01 2020-12-31 0001725430 GBS:WarrantsSeriesAMember 2020-07-01 2020-12-31 0001725430 GBS:WarrantsSeriesBMember 2020-10-01 2020-12-31 0001725430 GBS:WarrantsSeriesBMember 2020-07-01 2020-12-31 0001725430 GBS:LifeScienceBiosensorDiagnosticsPtyLtdMember 2020-12-13 2020-12-14 0001725430 us-gaap:PreferredStockMember 2020-07-01 2020-09-30 0001725430 us-gaap:PreferredStockMember 2020-06-30 0001725430 us-gaap:PreferredStockMember 2020-09-30 0001725430 us-gaap:PreferredStockMember 2019-07-01 2019-09-30 0001725430 us-gaap:PreferredStockMember 2019-06-30 0001725430 us-gaap:PreferredStockMember 2019-09-30 0001725430 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0001725430 us-gaap:CommonStockMember 2020-06-30 0001725430 us-gaap:CommonStockMember 2020-09-30 0001725430 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001725430 us-gaap:CommonStockMember 2019-06-30 0001725430 us-gaap:CommonStockMember 2019-09-30 0001725430 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0001725430 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001725430 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001725430 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001725430 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001725430 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001725430 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001725430 us-gaap:RetainedEarningsMember 2020-06-30 0001725430 us-gaap:RetainedEarningsMember 2020-09-30 0001725430 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001725430 us-gaap:RetainedEarningsMember 2019-06-30 0001725430 us-gaap:RetainedEarningsMember 2019-09-30 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001725430 us-gaap:NoncontrollingInterestMember 2020-07-01 2020-09-30 0001725430 us-gaap:NoncontrollingInterestMember 2020-06-30 0001725430 us-gaap:NoncontrollingInterestMember 2020-09-30 0001725430 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001725430 us-gaap:NoncontrollingInterestMember 2019-06-30 0001725430 us-gaap:NoncontrollingInterestMember 2019-09-30 0001725430 2019-07-01 2019-09-30 0001725430 2019-06-30 0001725430 2019-09-30 0001725430 us-gaap:PreferredStockMember 2019-10-01 2019-12-31 0001725430 us-gaap:PreferredStockMember 2019-12-31 0001725430 us-gaap:CommonStockMember 2019-10-01 2019-12-31 0001725430 us-gaap:CommonStockMember 2019-12-31 0001725430 us-gaap:AdditionalPaidInCapitalMember 2019-10-01 2019-12-31 0001725430 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001725430 us-gaap:RetainedEarningsMember 2019-10-01 2019-12-31 0001725430 us-gaap:RetainedEarningsMember 2019-12-31 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-10-01 2019-12-31 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001725430 us-gaap:NoncontrollingInterestMember 2019-10-01 2019-12-31 0001725430 us-gaap:NoncontrollingInterestMember 2019-12-31 0001725430 2019-12-31 0001725430 2020-07-01 2020-09-30 0001725430 2020-09-30 0001725430 us-gaap:PreferredStockMember 2020-10-01 2020-12-31 0001725430 us-gaap:PreferredStockMember 2020-12-31 0001725430 us-gaap:CommonStockMember 2020-10-01 2020-12-31 0001725430 us-gaap:CommonStockMember 2020-12-31 0001725430 us-gaap:AdditionalPaidInCapitalMember 2020-10-01 2020-12-31 0001725430 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001725430 us-gaap:RetainedEarningsMember 2020-10-01 2020-12-31 0001725430 us-gaap:RetainedEarningsMember 2020-12-31 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-10-01 2020-12-31 0001725430 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001725430 us-gaap:NoncontrollingInterestMember 2020-10-01 2020-12-31 0001725430 us-gaap:NoncontrollingInterestMember 2020-12-31 0001725430 us-gaap:IPOMember us-gaap:CommonStockMember GBS:UnderwriterOptionMember GBS:SeriesAWarrantsMember 2020-12-28 0001725430 us-gaap:IPOMember us-gaap:CommonStockMember GBS:UnderwriterOptionMember GBS:SeriesBWarrantsMember 2020-12-28 0001725430 us-gaap:IPOMember GBS:AdditionalCommonStockMember GBS:UnderwriterOptionMember 2020-12-28 0001725430 srt:ParentCompanyMember 2020-12-31 0001725430 GBS:UnderwritersWarrantsMember 2020-10-01 2020-12-31 0001725430 GBS:PreIPOWarrantsMember 2020-10-01 2020-12-31 0001725430 us-gaap:WarrantMember 2020-10-01 2020-12-31 0001725430 us-gaap:SeriesAPreferredStockMember 2020-10-01 2020-12-31 0001725430 us-gaap:SeriesBPreferredStockMember 2020-10-01 2020-12-31 0001725430 GBS:UnderwritersWarrantsMember 2020-07-01 2020-12-31 0001725430 GBS:PreIPOWarrantsMember 2020-07-01 2020-12-31 0001725430 us-gaap:WarrantMember 2020-07-01 2020-12-31 0001725430 us-gaap:SeriesAPreferredStockMember 2020-07-01 2020-12-31 0001725430 us-gaap:SeriesBPreferredStockMember 2020-07-01 2020-12-31 0001725430 GBS:WarrantsSeriesAMember 2019-07-01 2019-12-31 0001725430 GBS:WarrantsSeriesBMember 2019-07-01 2019-12-31 0001725430 GBS:UnderwritersWarrantsMember 2019-07-01 2019-12-31 0001725430 GBS:PreIPOWarrantsMember 2019-07-01 2019-12-31 0001725430 us-gaap:WarrantMember 2019-07-01 2019-12-31 0001725430 us-gaap:SeriesAPreferredStockMember 2019-07-01 2019-12-31 0001725430 GBS:WarrantsSeriesAMember 2019-10-01 2019-12-31 0001725430 GBS:WarrantsSeriesBMember 2019-10-01 2019-12-31 0001725430 GBS:UnderwritersWarrantsMember 2019-10-01 2019-12-31 0001725430 GBS:PreIPOWarrantsMember 2019-10-01 2019-12-31 0001725430 us-gaap:WarrantMember 2019-10-01 2019-12-31 0001725430 us-gaap:SeriesAPreferredStockMember 2019-10-01 2019-12-31 0001725430 us-gaap:SeriesBPreferredStockMember 2019-10-01 2019-12-31 0001725430 us-gaap:SeriesBPreferredStockMember 2019-07-01 2019-12-31 0001725430 us-gaap:SubsequentEventMember GBS:SeriesAWarrantsMember 2021-01-01 2021-02-11 0001725430 us-gaap:SubsequentEventMember GBS:SeriesAWarrantsMember 2021-02-11 0001725430 us-gaap:SubsequentEventMember GBS:SeriesBWarrantsMember 2021-01-01 2021-02-11 0001725430 us-gaap:SubsequentEventMember GBS:SeriesBWarrantsMember 2021-02-11 0001725430 us-gaap:SubsequentEventMember GBS:HarvardCollegeMember 2021-01-05 0001725430 us-gaap:SubsequentEventMember GBS:HarvardCollegeMember GBS:ResearchCollaborationAgreementMember GBS:ReceiptOfInitialInvoiceMember 2021-01-05 0001725430 us-gaap:SubsequentEventMember GBS:HarvardCollegeMember GBS:ResearchCollaborationAgreementMember GBS:MliestoneTrancheOneMember 2021-01-05 0001725430 us-gaap:SubsequentEventMember GBS:HarvardCollegeMember GBS:ResearchCollaborationAgreementMember GBS:MliestoneTrancheTwoMember 2021-01-05 0001725430 us-gaap:IPOMember us-gaap:CommonStockMember GBS:UnderwriterOptionMember 2020-12-28 0001725430 2021-02-11 0001725430 us-gaap:IPOMember 2020-12-28 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure 10-Q false 2020-12-31 Q2 2021 --06-30 GBS Inc. 0001725430 No Non-accelerated Filer true true false false Yes

-3067304

-2617863

-1990389

-1853033

-1072510

-757850

-4405

-6980

-764830

-1836318

-16715

-1076915

-1983964

-6425

18821156

-5186517

18799962

-18888991

-15832517

0.13 0.03 0.07 P10Y

1270589

2736675

17.00

8.50

17.00

21600013

17732448

2153564

2810190

3000000

710548

1714001

88548

49062

1596

29469

77710

7509

752772

787469

29051

56894

128172

246999

595549

483576

0.50

0.85

7.23

5133706

905948

2000000

17.00

8.50

18.70

3000000

In addition, the parties to the Exchange Agreement entered into a Registration Rights Agreement (the "RRA") pursuant to which the Company agreed to prepare and file within 30 days following the closing of the IPO with the Securities and Exchange Commission a registration statement to register for resale the shares of Common Stock issuable upon conversion of the Series B Convertible Preferred Stock. If and to the extent the Company fails to, among other things, file such resale registration statement or have it declared as required under the terms of the RRA, the Company will be required to pay to the holder of such registration rights partial liquidated damages payable in cash in the amount equal to the product of 1.0% multiplied by the aggregate purchase price paid by such holder pursuant to the EA. The EA and the RRA contain customary representations, warranties, agreements and, indemnification rights and obligations of the parties. This was accounted for as a modification and the par value of the common stock was reclassified to the par value of the preferred stock.

599848

730148

121277

0.50

0.544

Life Science Biosensor Diagnostics Pty Ltd is the parent of both the Company and BiosensX (North America), the transfer of BiosensX shares to the Company was deemed to be a common control transaction. As a result of the share transfer, the Company has significant influence over BiosensX (North America) Inc. but in accordance with ASC 810 Consolidation Life Science Biosensor Diagnostics is deemed to have control over BiosensX (North America) Inc. due to its direct ownership of 50% in BiosensX (North America) Inc. and indirect ownership of 50% in BiosensX (North America) Inc. through GBS Inc.

10422497

8630000

14000000

0.01

0.001

-135692 121692

-3056474

-2594168

-1983964

-1836318

-2594168

-.35

-0.23

-.22

-.30

8626362

8510000

8622724

8510000

1459977

1461177

63529

2736675

3000000

63529

2736675

3000000

2250376

2323891

2250376

2323891

P5Y

19877860

427273

1863613

19966408

2339948

19966408

2475640

734825

787469

431621

1769293

5133706

1166446

7690468

17947

1184393

7690468

30000

23709

104225

86300

37956585

10899942

-380663

-363951

-39141

-28311

18782015

-5214828

23709

28102

20649

23239

86300

85100

10899942

14190294

8801860

9649114

-15832517

-16905027

-12668741

-13426591

-363951

-414519

-216870

-212636

-28311

-32716

637919

-6117

-3977139

-3887891

23239

85100

9649114

-15262909

-345922

-22832

-5874210

-3047566

30000

104225

37956585

-18888991

-380663

-39141

19966408

2475640

0.01

10000000

3000000

2370891

3000000

2370891

100000000

10422497

8630000

338464 283037 121277 -798

1192453

1698340

671450

972012

372758

599848

341820

494667

1918785

2440553

1200363

1703117

-1580321

-2319276

-917326

-1703915

1072688

298656

986860

149145

-135692

-279107

-86637

504

434

-1486983

-298587

-1073063

-149118

-3067304

-2617863

-1990389

-1853033

-10830

-23695

-6425

-16715

-16712

-129050

33856

-133286

-16712

-129050

33856

-133286

-0.35

-.30

-0.23

-.22

2370891

2810190

2064884

2323891

8630000

8510000

2323891

8510000

3000000

10422527

-976308 -976308

33856

-133286

-50568

4234

-133286

-50568

33856

21600013

12706

21587307

1270589

30000 -30000 3000000 -3000000 -28102 28102 -2810190 2810190 10200 12 10188 1200

-135692

-52644

-515391

-1337672

2458158

17947

-3454231

-474942

3812

502350

1364495

10200

3294745

648750

2003952

116402

22904818

532348

19450587

57406

19877860

427273

197940

255346

1863613

5133706

28102

166740

170198

16712

129050

-33856

133286

-118056

39486

-72939

905948

5133706

7105

5126601

710548

4393 2590 3290352 1939964 1942554 3294745 439299 259007 3812 3812 976308 9242 12084

3000000

190588

63529

135692

135692 14000 11875222

353574 142365 187093 236438

138209

905948 637056 59100

1402077

66382

609375 304687 152344 152344

-3867565 -116402 -116402 -3867565 NOTE 2. LIQUIDITY   The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern (ASC 205-40) requires management to assess an entity’s ability to continue as a going concern within one year of the date of the financial statements are issued. In each reporting period, including interim periods, an entity is required to assess conditions known and reasonably knowable as of the financial statement issuance date to determine whether it is probable an entity will not meet its financial obligations within one year from the financial statement issuance date. Substantial doubt about an entity’s ability to continue as a going concern exists when conditions and events, considered in the aggregate, indicate it is probable the entity will be unable to meet its financial obligations as they become due within one year after the date the financial statements are issued.   The Company is an emerging growth company and has not generated any revenues to date. As such, the Company is subject to all of the risks associated with emerging growth companies. Since inception, the Company has incurred losses and negative cash flows from operating activities. The Company does not expect to generate positive cash flows from operating activities in the near future until such time, if at all, the Company completes the development process of its products, including regulatory approvals, and thereafter, begins to commercialize and achieve substantial acceptance in the marketplace for the first of a series of products in its medical device portfolio.   The Company incurred a net loss of $3,067,304 for the six months ended December 31, 2020 (Net loss $2,617,863 for the six months ended December 31, 2019). At December 31, 2020, the Company has shareholders’ equity of $18,782,015, working capital of $18,799,962, and an accumulated deficit of $(18,888,991).   On January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the novel coronavirus disease 2019 (“COVID-19”) outbreak a public health emergency of international concern and on March 12, 2020 the WHO announced the outbreak was a pandemic. The COVID-19 pandemic is having a negative impact on global markets and business activity, which has had a limited impact on our core business operations. However, due to the nature of our platform technology we are able to quickly adapt to this rapidly evolving environment. As part of the immunology modality of the biosensor platform, the parent company, Life Science Biosensor Diagnostics Pty Ltd (LSBD) executed an agreement on May 29, 2020 with the Wyss Institute for Biologically Inspired Engineering at Harvard University (Wyss) to use the biosensor platform to develop a COVID-19 rapid diagnostic test. The Company has the rights to the technology from this agreement under a Technology Transfer Agreement global license with LSBD entered into on June 23, 2020.   GBS Inc. is the global licensee and intends to commercialize COVID-19 diagnostic tests across the US, Europe, APAC and the rest of the world through appropriately qualified distributors.   In the near future, the Company anticipates incurring operating losses and does not expect to experience positive cash flows from operating activities and may continue to incur operating losses until it completes the development of its products and seeks regulatory approvals to market such products.   The Group’s consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities should the Group be unable to continue as a going concern.   As a result of the Company’s initial public offering (see Note 1), the Company believes it has sufficient working capital to finance its operations for the next twelve months as such these financial statements are prepared on the going concern basis.

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Basis of presentation   The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The results of operations for an interim period may not give a true indication of the results for the entire year. The June 30, 2020 consolidated balance sheet has been derived from the audited financial statements as of that date.   These condensed consolidated financial statements have been derived from, and should be read in conjunction with, the Company’s audited consolidated financial statements and notes thereto as of and for the year ended June 30, 2020 included in the Company’s Registration Statement on Form S-1, File No. 333-252277 on file with the U.S. Securities and Exchange Commission (the “SEC”). There have not been any significant changes to the Company’s significant accounting policies during the six months ended December 31, 2020.   Use of estimates   The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates.   Reclassifications   Certain reclassifications have been made to prior periods to conform to current period presentation as described below.   In the comparative period (FY 2020), management determined that certain transactions involving the issuance of shares of its subsidiary that occurred during the prior year should have resulted in an adjustment to non-controlling interest (“NCI”) and Additional Paid-in-Capital (“APIC”) to reflect the difference between the fair value of the consideration received and the book value of NCI involving these changes in ownership. As a result, the Company increased its prior year APIC with an offsetting reduction to NCI of $637,056. Management concluded that this reclassification was not meaningful to the Company’s financial position for the prior year, and as such, this change was recorded in the consolidated balance sheet and statement of shareholder’s equity in the first quarter of the comparative period (FY 2020) as an out-of-period adjustment.   Revenue recognition   Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by delivering the promised goods or service deliverables to the customers. A good or service deliverable is transferred to a customer when, or as, the customer obtains control of that good or service deliverable. The Company currently does not generate any revenue.   Foreign currency translation   Assets and liabilities of foreign subsidiaries are translated from local (functional) currency to presentation currency (U.S. dollar) at the rate of exchange in effect on the consolidated balance sheets date; income and expenses are translated at the average rate of exchange prevailing during the year. The functional currency of GBS Inc is the United States dollar. Foreign currency movements resulted in a gain/(loss) of $33,856 and ($16,712) for the three and six months ended December 31, 2020, respectively ($133,286) and ($129,050) for the three and six months ended December 31, 2019, respectively.   Income taxes   In accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes, tax positions initially need to be recognized in the consolidated financial statements when it is more likely than not that the positions will be sustained upon examination by taxing authorities. It also provides guidance for de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.   As of December 31, 2020, the Group had no uncertain tax positions that qualified for either recognition or disclosure in the consolidated financial statements. Additionally, the Group had no interest and penalties related to income taxes.   The Group accounts for current and deferred income taxes and, when appropriate, deferred tax assets and liabilities are recorded with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of all available evidence, it is more likely than not that some amount of the recorded deferred tax assets will not be realized, a valuation allowance is established for that amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized.   Debt issuance cost   Debt issuance costs are amortized using the effective interest rate method over the term of the loan and the amortization expense is recorded as part of interest expense of the consolidated statements of operations.   Licensing rights   During the first quarter of the FY ended 30 June 2020, the Company had purchased the license right procurement assets from Life Science Biosensor Diagnostics Pty Ltd for an amount of $976,308 (June 30, 2019: $ nil) in relation to the development and approval process for the Glucose Biosensor Technology. The Company recorded the license at the historical carrying value in the books of LSBD which was $ nil and recorded the amount paid as a deemed dividend. The Company has agreed to pay royalties of sales & milestones payments as defined.   On July 3, 2019, the Company entered into an amended and restated license agreement. There is no set expiration date for the license. However, the exclusivity of the license granted under the license agreement runs until the expiration of the patent portfolio covered by the agreement which is currently until 2033. No royalties have been incurred through to December 31, 2020 (December 31, 2019: $ nil).   Research and development costs   Research and development costs are expensed as incurred.   Net loss per share attributable to common shareholders (“EPS”)   The Company calculates earnings per share attributable to common shareholders in accordance with ASC Topic 260, “Earning Per Share.” Basic net income (loss) per share attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common shareholders by weighted-average common shares outstanding during the period plus potentially dilutive common shares, such as share warrants.   Potentially dilutive common shares shall be calculated in accordance with the treasury share method, which assumes that proceeds from the exercise of all warrants are used to repurchase common share at market value. The number of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities.   As the Company has incurred net losses in all periods, certain potentially dilutive securities, including convertible preferred stock, warrants to acquire common stock, and convertible notes payable have been excluded in the computation of diluted loss per share as the effects are antidilutive.   Recently issued but not yet effective accounting pronouncements   As the Company is an emerging growth company, it has elected to defer the adoption of new accounting pronouncements until they would apply to private companies.   In August 2020, the FASB issued ASU 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. Also, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and treasury stock method will be no longer available. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company does not intend to early adopt and continues to evaluate the impact of the provisions of ASU 2020-06 on its consolidated financial statements.   In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). This update requires all leases with a term greater than 12 months to be recognized on the balance sheet through a right-of-use asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for fiscal years beginning after December 15, 2021, and interim period within fiscal years beginning after December 15, 2022 as amended by ASU 2020-05 with early adoption permitted. The Company has not early adopted the standard.   In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects of the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company has not early adopted the standard.   Concentration of credit risk   The Company places its cash and cash equivalents, which may at times be in excess of the Australia Financial Claims Scheme or the United States’ Federal Deposit Insurance Corporation insurance limits, with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution.   Related parties   The Company has related party transactions with its parent LSBD. See Notes 7 and 8.   Fair value of financial instruments   The carrying value of financial instruments classified as current assets and current liabilities approximate fair value due to their liquidity and short-term nature.

NOTE 4. OTHER CURRENT ASSETS   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">June 30, 2020</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%">Goods and services tax receivable</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">77,710</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">7,509</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Prepayments</td> <td> </td> <td> </td> <td style="text-align: right">1,596</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">29,469</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt">Other receivables</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">9,242</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">12,084</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">88,548</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">49,062</td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>

NOTE 5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">June 30, 2020</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%">Accounts and other payables</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">595,549</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">483,576</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Accruals</td> <td> </td> <td> </td> <td style="text-align: right">29,051</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">56,894</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt">Employee liabilities (current and non-current)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">128,172</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">246,999</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">752,772</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">787,469</td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>

NOTE 7. SHAREHOLDERS’ EQUITY   December 2020 Transactions   On December 14, 2020, the Company agreed to issue to LSBD, in consideration of LSBD’s contribution towards the research and development of applications other than glucose and COVID-19 applications to a maximum of $2 million over a 5-year period, a 5-year non-transferable warrant to purchase 3,000,000 shares of the Company’s common stock at the exercise price of $17.00 per share. As this was a transaction between entities under common control, the $2 million receivable due from LSBD has been recognized as contra-equity.   On December 18, 2020, the Company entered into an Exchange Agreement (the “EA”) with LSBD to exchange 3,000,000 shares of its common stock held by LSBD for 3,000,000 shares of the Company’s Series B Convertible Preferred Stock (“Exchange”). In addition, the parties to the Exchange Agreement entered into a Registration Rights Agreement (the “RRA”) pursuant to which the Company agreed to prepare and file within 30 days following the closing of the IPO with the Securities and Exchange Commission a registration statement to register for resale the shares of Common Stock issuable upon conversion of the Series B Convertible Preferred Stock. If and to the extent the Company fails to, among other things, file such resale registration statement or have it declared effective as required under the terms of the RRA, the Company will be required to pay to the holder of such registration rights partial liquidated damages payable in cash in the amount equal to the product of 1.0% multiplied by the aggregate purchase price paid by such holder pursuant to the EA. The EA and the RRA contain customary representations, warranties, agreements and, indemnification rights and obligations of the parties. The common stock acquired in the Exchange was immediately retired. Each share of Series B Convertible Preferred Stock is convertible into 1 shares of the Company’s common stock, subject to proportional adjustment and beneficial ownership limitations. In the event of the Company’s liquidation, dissolution or winding up, holders of Series B Convertible Preferred Stock will participate pari passu with any distribution of proceeds to holders of the Company’s common stock. Holders of Series B Convertible Preferred Stock are entitled to receive dividends on shares of Series B Preferred equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on the Company’s common stock. Shares of Series B Convertible Preferred Stock generally have no voting rights, except as required by law.   Initial public offering   In December 2020, the Company completed its initial public offering. See Note 1.

NOTE 9. INVESTMENT IN AFFILIATE   On May 29, 2020 the parent Company, Life Science Biosensor Diagnostics Pty Ltd, issued 14,000,000 common shares of BiosensX (North America) Inc. to the Company at par value of $0.001 per share. This transaction provided the Company with a 50% interest in BiosensX (North America) Inc., the holder of the technology license for the North America region.   The investment in BiosensX (North America) Inc. is accounted for by use of the equity method in accordance with ASC 323 Investments - Equity Method and Joint Ventures.   Life Science Biosensor Diagnostics Pty Ltd is the parent of both the Company and BiosensX (North America), the transfer of BiosensX shares to the Company was deemed to be a common control transaction. As a result of the share transfer, the Company has significant influence over BiosensX (North America) Inc. but in accordance with ASC 810 Consolidation Life Science Biosensor Diagnostics is deemed to have control over BiosensX (North America) Inc. due to its direct ownership of 50% in BiosensX (North America) Inc. and indirect ownership of 50% in BiosensX (North America) Inc. through GBS Inc.   The following table summarizes the amount recorded in the consolidated financial statements:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">June 30, 2020</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%">Investment value</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">135,692</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">14,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt">(Loss) income from the affiliate</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">(135,692</td> <td style="padding-bottom: 1.5pt">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">121,692</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Carrying amount</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">-</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">135,692</td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>

NOTE 10. COMMITMENTS AND CONTINGENCIES   The Company has no material future minimum lease commitments or purchase commitments.   From time to time, the Company is party to various legal proceedings arising in the ordinary course of business. Based on information currently available, the Company is not involved in any pending or threatened legal proceedings that it believes could reasonably be expected to have a material adverse effect on its financial condition, results of operations or liquidity. However, legal matters are inherently uncertain, and the Company cannot guarantee that the outcome of any legal matter will be favorable to the Company.

NOTE 11. LOSS PER SHARE   Basic loss per common share is computed by dividing net loss allocable to common stockholders by the weighted average number of shares of common stock or common stock equivalents outstanding. Diluted loss per common share is computed similar to basic loss per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock.   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center">Three Months Ended</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center">Six Months Ended</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%">Net loss attributable to GBS, Inc.</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">(1,983,964</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">(1,836,318</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">(3,056,474</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">(2,594,168</td> <td style="width: 1%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Basic and diluted net loss per share attributed to common shareholders</td> <td> </td> <td>$</td> <td style="text-align: right">(0.23</td> <td>)</td> <td> </td> <td>$</td> <td style="text-align: right">(0.22</td> <td>)</td> <td> </td> <td>$</td> <td style="text-align: right">(0.35</td> <td>)</td> <td> </td> <td>$</td> <td style="text-align: right">(0.30</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Weighted-average number of ordinary shares</td> <td> </td> <td> </td> <td style="text-align: right">8,622,724</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">8,510,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">8,626,362</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">8,510,000</td> <td> </td></tr> </table>   The following outstanding warrants, options and preferred shares were excluded from the computation of diluted net loss per share for the periods presented because their effect would have been anti-dilutive:   Anti-dilutive warrants and preferred shares:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center">Three Months Ended</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center">Six Months Ended</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%">Warrants - Series A</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: right">1,459,977</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: right">-</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: right">1,459,977</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: right">-</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Warrants - Series B</td> <td> </td> <td> </td> <td style="text-align: right">1,461,177</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1,461,177</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Warrants issued to underwriters</td> <td> </td> <td> </td> <td style="text-align: right">63,529</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">63,529</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Pre IPO warrants</td> <td> </td> <td> </td> <td style="text-align: right">2,736,675</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,250,376</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,736,675</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,250,376</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Warrants issued to parent entity</td> <td> </td> <td> </td> <td style="text-align: right">3,000,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3,000,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Preferred stock - Series A</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,323,891</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,323,891</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Preferred stock - Series B</td> <td> </td> <td> </td> <td style="text-align: right">3,000,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3,000,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> </table>

Anti-dilutive warrants and preferred shares:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center">Three Months Ended</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center">Six Months Ended</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%">Warrants - Series A</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: right">1,459,977</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: right">-</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: right">1,459,977</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%; text-align: right">-</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Warrants - Series B</td> <td> </td> <td> </td> <td style="text-align: right">1,461,177</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">1,461,177</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Warrants issued to underwriters</td> <td> </td> <td> </td> <td style="text-align: right">63,529</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">63,529</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Pre IPO warrants</td> <td> </td> <td> </td> <td style="text-align: right">2,736,675</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,250,376</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,736,675</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,250,376</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Warrants issued to parent entity</td> <td> </td> <td> </td> <td style="text-align: right">3,000,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3,000,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Preferred stock - Series A</td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,323,891</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">2,323,891</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Preferred stock - Series B</td> <td> </td> <td> </td> <td style="text-align: right">3,000,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">3,000,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">-</td> <td> </td></tr> </table>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center">Three Months Ended</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center">Six Months Ended</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%">Net loss attributable to GBS, Inc.</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">(1,983,964</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">(1,836,318</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">(3,056,474</td> <td style="width: 1%">)</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">(2,594,168</td> <td style="width: 1%">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Basic and diluted net loss per share attributed to common shareholders</td> <td> </td> <td>$</td> <td style="text-align: right">(0.23</td> <td>)</td> <td> </td> <td>$</td> <td style="text-align: right">(0.22</td> <td>)</td> <td> </td> <td>$</td> <td style="text-align: right">(0.35</td> <td>)</td> <td> </td> <td>$</td> <td style="text-align: right">(0.30</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>Weighted-average number of ordinary shares</td> <td> </td> <td> </td> <td style="text-align: right">8,622,724</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">8,510,000</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">8,626,362</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">8,510,000</td> <td> </td></tr> </table>

The following table summarizes the amount recorded in the consolidated financial statements:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">June 30, 2020</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%">Investment value</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">135,692</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">14,000</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt">(Loss) income from the affiliate</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">(135,692</td> <td style="padding-bottom: 1.5pt">)</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">121,692</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Carrying amount</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">-</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">135,692</td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">December 31, 2020</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">June 30, 2020</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%">Goods and services tax receivable</td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">77,710</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td style="width: 18%; text-align: right">7,509</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Prepayments</td> <td> </td> <td> </td> <td style="text-align: right">1,596</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">29,469</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt">Other receivables</td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">9,242</td> <td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid; text-align: right">12,084</td> <td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">88,548</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">49,062</td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>

Fair value of financial instruments   The carrying value of financial instruments classified as current assets and current liabilities approximate fair value due to their liquidity and short-term nature.

Related parties   The Company has related party transactions with its parent LSBD. See Notes 7 and 8.

Concentration of credit risk   The Company places its cash and cash equivalents, which may at times be in excess of the Australia Financial Claims Scheme or the United States’ Federal Deposit Insurance Corporation insurance limits, with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution.

Recently issued but not yet effective accounting pronouncements   As the Company is an emerging growth company, it has elected to defer the adoption of new accounting pronouncements until they would apply to private companies.   In August 2020, the FASB issued ASU 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. Also, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and treasury stock method will be no longer available. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company does not intend to early adopt and continues to evaluate the impact of the provisions of ASU 2020-06 on its consolidated financial statements.   In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). This update requires all leases with a term greater than 12 months to be recognized on the balance sheet through a right-of-use asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for fiscal years beginning after December 15, 2021, and interim period within fiscal years beginning after December 15, 2022 as amended by ASU 2020-05 with early adoption permitted. The Company has not early adopted the standard.   In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects of the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company has not early adopted the standard.

Net loss per share attributable to common shareholders (“EPS”)   The Company calculates earnings per share attributable to common shareholders in accordance with ASC Topic 260, “Earning Per Share.” Basic net income (loss) per share attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common shareholders by weighted-average common shares outstanding during the period plus potentially dilutive common shares, such as share warrants.   Potentially dilutive common shares shall be calculated in accordance with the treasury share method, which assumes that proceeds from the exercise of all warrants are used to repurchase common share at market value. The number of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities.   As the Company has incurred net losses in all periods, certain potentially dilutive securities, including convertible preferred stock, warrants to acquire common stock, and convertible notes payable have been excluded in the computation of diluted loss per share as the effects are antidilutive.

Licensing rights   During the first quarter of the FY ended 30 June 2020, the Company had purchased the license right procurement assets from Life Science Biosensor Diagnostics Pty Ltd for an amount of $976,308 (June 30, 2019: $ nil) in relation to the development and approval process for the Glucose Biosensor Technology. The Company recorded the license at the historical carrying value in the books of LSBD which was $ nil and recorded the amount paid as a deemed dividend. The Company has agreed to pay royalties of sales & milestones payments as defined.   On July 3, 2019, the Company entered into an amended and restated license agreement. There is no set expiration date for the license. However, the exclusivity of the license granted under the license agreement runs until the expiration of the patent portfolio covered by the agreement which is currently until 2033. No royalties have been incurred through to December 31, 2020 (December 31, 2019: $ nil).

Debt issuance cost   Debt issuance costs are amortized using the effective interest rate method over the term of the loan and the amortization expense is recorded as part of interest expense of the consolidated statements of operations.

Income taxes   In accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes, tax positions initially need to be recognized in the consolidated financial statements when it is more likely than not that the positions will be sustained upon examination by taxing authorities. It also provides guidance for de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.   As of December 31, 2020, the Group had no uncertain tax positions that qualified for either recognition or disclosure in the consolidated financial statements. Additionally, the Group had no interest and penalties related to income taxes.   The Group accounts for current and deferred income taxes and, when appropriate, deferred tax assets and liabilities are recorded with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of all available evidence, it is more likely than not that some amount of the recorded deferred tax assets will not be realized, a valuation allowance is established for that amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized.

Foreign currency translation   Assets and liabilities of foreign subsidiaries are translated from local (functional) currency to presentation currency (U.S. dollar) at the rate of exchange in effect on the consolidated balance sheets date; income and expenses are translated at the average rate of exchange prevailing during the year. The functional currency of GBS Inc is the United States dollar. Foreign currency movements resulted in a gain/(loss) of $33,856 and ($16,712) for the three and six months ended December 31, 2020, respectively ($133,286) and ($129,050) for the three and six months ended December 31, 2019, respectively.

Revenue recognition   Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by delivering the promised goods or service deliverables to the customers. A good or service deliverable is transferred to a customer when, or as, the customer obtains control of that good or service deliverable. The Company currently does not generate any revenue.

Reclassifications   Certain reclassifications have been made to prior periods to conform to current period presentation as described below.   In the comparative period (FY 2020), management determined that certain transactions involving the issuance of shares of its subsidiary that occurred during the prior year should have resulted in an adjustment to non-controlling interest (“NCI”) and Additional Paid-in-Capital (“APIC”) to reflect the difference between the fair value of the consideration received and the book value of NCI involving these changes in ownership. As a result, the Company increased its prior year APIC with an offsetting reduction to NCI of $637,056. Management concluded that this reclassification was not meaningful to the Company’s financial position for the prior year, and as such, this change was recorded in the consolidated balance sheet and statement of shareholder’s equity in the first quarter of the comparative period (FY 2020) as an out-of-period adjustment.

Use of estimates   The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates.

Basis of presentation   The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The results of operations for an interim period may not give a true indication of the results for the entire year. The June 30, 2020 consolidated balance sheet has been derived from the audited financial statements as of that date.   These condensed consolidated financial statements have been derived from, and should be read in conjunction with, the Company’s audited consolidated financial statements and notes thereto as of and for the year ended June 30, 2020 included in the Company’s Registration Statement on Form S-1, File No. 333-252277 on file with the U.S. Securities and Exchange Commission (the “SEC”). There have not been any significant changes to the Company’s significant accounting policies during the six months ended December 31, 2020.

Research and development costs   Research and development costs are expensed as incurred.

1863612

NOTE 1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS   GBS Inc. and its wholly owned subsidiary, GBS Operations Inc. are formed under the laws of the state of Delaware, and were formed on December 5, 2016. Glucose Biosensor Systems (Greater China) Pty Ltd (“GBSPL”) was formed on August 4, 2016 under the laws of New South Wales, Australia and was renamed to GBS (APAC) Pty Ltd on October 14, 2020. Glucose Biosensor Systems (Japan) Pty Ltd and Glucose Biosensor Systems (APAC) Pty Ltd were formed under the laws of New South Wales, Australia on February 22, 2017 and February 23, 2017 respectively. These companies (collectively, the “Company” or “Group”) were formed to provide a non-invasive, pain free innovation to make it easier for people to manage diabetes using the Company’s Saliva Glucose Biosensor (“SGB” and, together with the software app that interfaces the SGB with the Company’s digital information system, the “SGT”).   GBS Inc, has 54.4% of its common stock owned of Life Science Biosensor Diagnostics Pty Ltd (“LSBD”), an Australian company that owns the worldwide intellectual property rights to the biosensor platform from University of Newcastle, Australia. LBSD has licensed to the Company that technology to introduce and launch the platform in the Asia-Pacific Region (“APAC”). We will commence this process with the SGT.   On May 29, 2020, a research agreement was executed between LSBD and the Wyss Institute for Biologically Inspired Engineering at Harvard University (Wyss). The Company is not a legal party to the agreement but is expecting to derive a benefit through the Technology Transfer Agreement executed with LSBD and the Company on June 23, 2020, further details which are provided below. The Company has transferred biosensors (research materials) to the Wyss Institute where its research and development scientists have commenced a pilot research program. Since the biosensor architecture is complete and given the pre-existing plans to develop immunology diagnostic tests, it is therefore relatively straightforward and expeditious to develop the SARS-CoV-2 test.   SARS-CoV-2 antibody testing in saliva can play a critically important role in large-scale ‘sero’-surveillance to address key public health priorities and guide policy and decision-making for COVID-19. It is anticipated that FDA review will be under the Emergency Use Authorization program, which means expedited time to market.   On June 23, 2020, The Company entered into a Technology Transfer Agreement global license with LSBD. The significant terms of the license agreement are:   <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 12pt Times New Roman, Times, Serif; width: 24px"> </td> <td style="font: 12pt Times New Roman, Times, Serif; width: 24px">● </td> <td style="font: 12pt Times New Roman, Times, Serif; text-align: justify">The Company has the exclusive worldwide rights to a biosensor strip for antibodies against SARS-CoV-2 and associated application for reading devices to:</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 72px; text-align: justify"> </td> <td style="width: 24px; text-align: justify">○ </td> <td style="text-align: justify">act as the authorized party for the purpose of processing the application of, and obtaining any, regulatory approval for the Licensed Product, including being authorized to process the approval for an investigational device required for the purpose of carrying out clinical studies.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify">○ </td> <td style="text-align: justify">manufacture, promote, market, import, offer, sell, and distribute the Licensed Products.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify">○</td> <td style="text-align: justify"> provide reasonable customer support services on the use of the Licensed Products to end users of, and health care practitioners referring end users to, the Licensed Products.</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify">○ </td> <td style="text-align: justify">use the Licensed Products only for the purposes identified and permitted pursuant to regulatory approval; and</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify">○ </td> <td style="text-align: justify">collect data acquired from the Licensed Products</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px; text-align: justify"> </td> <td style="width: 24px; text-align: justify">●</td> <td style="text-align: justify">The royalty rate is 13%, based upon mutually agreed sales projections on the net sales of the commercial units and dedicated reading devices. This serves as the minimum royalty and falls to 3% at the expiry of the relevant patent(s)</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify">●</td> <td style="text-align: justify">Each additional year, the sales upon which the minimum royalty is calculated on is increased by the mutually agreed Expected Market Growth rate plus an Additional Growth Percentage rate up to 7% annually. The Additional Growth Percentage Rate is calculated and applied for 10 years</td></tr> <tr style="vertical-align: top"> <td style="text-align: justify"> </td> <td style="text-align: justify">●</td> <td style="text-align: justify">In the event of a dispute, in relation to the expected market growth or additional percentage, the agreement provides for a dispute resolution by an independent third party.</td></tr> </table>   There are no milestone payments.   Initial public offering   On December 28, 2020, the Company closed its initial public offering (“IPO”) and sold 1,270,589 units, consisting of (a) one share of the Company’s common stock (or, at the purchaser’s election, one share of Series B Convertible Preferred Stock), (b) one Series A warrant (the “Series A Warrants”) to purchase one share of the Company’s common stock at an exercise price equal to $8.50 per share, exercisable until the fifth anniversary of the issuance date, and (c) one Series B warrant (the “Series B Warrants”) to purchase one share of the Company’s common stock at an exercise price equal to $17.00 per share, exercisable until the fifth anniversary of the issuance date and subject to certain adjustment and cashless exercise provisions. The public offering price of the shares sold in the IPO was $17.00 per unit. In aggregate, the units issued in the offering generated $17,732,448 in net proceeds, which amount is net of $1,714,001 in underwriters’ discount and commissions, $2,153,564 in offering costs (including deferred equity offering cost of $1,863,612). Offering costs include underwriters’ warrants to acquire up to 63,529 shares with an exercise price of $18.70 per share, exercisable until the fifth anniversary of the issuance date. The Company also issued to the underwriter an option, exercisable one or more times in whole or in part, to purchase up to 190,588 additional shares of common stock and/or Series A Warrants to purchase up to an aggregate of 190,588 shares of common stock and/or Series B Warrants to purchase up to an aggregate of 190,588 shares of common stock, in any combinations thereof, from us at the public offering price per security, less the underwriting discounts and commissions, for 45 days after the date of the IPO to cover over-allotments, if any (the “Over-Allotment Option”).   Upon the closing of the IPO, all shares of preferred stock then outstanding were automatically converted into 2,810,190 shares of common stock, and all convertible notes then outstanding were automatically converted into 710,548 shares of common stock.   Pre-IPO preferred shareholders were issued warrants following the Company’s completed IPO, that allows the holder to acquire 2,736,675 shares of common stock at the IPO price during year two through to year three following the completion of the IPO. At exercise date, the shareholder must hold, for each warrant to be exercised, the underlying common share to exercise the warrant. The warrants are not transferable and apply to the number of shares that were subscribed for.

NOTE 6. CONVERTIBLE NOTES PAYABLE   The Company’s previously outstanding notes mandatorily converted, at a conversion price equal to 85% of 50% of the unit offering price of the IPO (or $7.23), for an aggregate of 710,548 shares based on $5,133,706 of principal and zero accrued interest outstanding at the date of conversion.   The convertible notes had a contingent Beneficial Conversion Features (BCF), with the contingency being the event of IPO. As such, a financing cost of $905,948 was recognized as interest expense in the consolidated statements of operations and other comprehensive loss in relation to this contingent BCF during the three and six months ended December 31, 2020.

NOTE 8. RELATED-PARTY TRANSACTIONS   In December 2020, the Company completed certain financing transactions with its Parent, LSBD as described in Note 7.   Sales to and purchases from related parties are made in arm’s length transactions both at normal market prices and on normal commercial terms. The following transactions occurred with LSBD during the period July 1, 2020 to December 31, 2020 (FY2020: July 1, 2019 to December 31, 2019):   The Company incurred a total of $nil (FY2020: $599,848) towards the services in connection with development and regulatory approval pathway for the technology, including payments made or expenses incurred on behalf of the Company.   The Company incurred a total of $nil (FY2020: $730,148) towards overhead cost reimbursement which includes salaries, rents and other related overheads directly attributable to the company which are included in general and administration expenses.   The Company recognized income of $nil (FY2020: $121,277) in relation to shared labor reimbursement which includes salaries directly attributable to the company which are included in shared-services revenue.

NOTE 12. SUBSEQUENT EVENTS   Subsequent to December 31, 2020, the Company received $502,350 in relation to the exercise of 59,100 Series A Warrants to purchase one share of Common Stock per Warrant at an exercise price $ 8.50. As of February 11, 2021, a total of 1,402,077 Series A warrants remain outstanding.   Subsequent to December 31, 2020 a total of 1,364,495 Series B Warrants were exercised to purchase one Common Stock per Warrants in a cashless exercise provision as described in Company’s Registration Statement on Form S-1, File No. 333-252277 on file with the U.S. Securities and Exchange Commission (the “SEC”). As of February 11, 2021, a total of 66,382 Series B remain outstanding.   On January 5, 2021, the Company entered into a certain Research Collaboration Agreement with Harvard College for the purposes of facilitating mutual collaboration in scientific research in connection with the Company’s non-exclusive royalty free license to combat COVID-19 coronavirus. The contemplated collaboration includes research teams from the Company and Harvard and will include, among others, exchange of materials and research data, to now progress with the milestone of integrating the Harvard technology with the Company’s biosensor with applications for SARS-Cov-2 antibody test for COVID-19. The Company agreed to pay Harvard a total amount of $609,375 payable in 3 instalments, with $304,687.50 payable upon receipt of the initial invoice, and two additional payments of $152,343.75 each, upon 90 and 180 day anniversary following the date of the agreement. For additional details refer to form 8-k on January 8, 2021.

338464

121277

283037

-798

3084016

2746913

1956533

1986319

EX-101.SCH 7 gbs-20201231.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Condensed Consolidated Balance Sheets (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Condensed Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - Condensed Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - Organization and Description of the Business link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Liquidity link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Summary of Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Other Current Assets link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Accounts Payable and Accrued Expenses link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Convertible Notes Payable link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Stockholders' Equity link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Related Party Transactions link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Investment in Affiliate link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Loss Per Share link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Subsequent Events link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Summary of Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Other Current Assets (Tables) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Accounts Payable and Accrued Expenses (Tables) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Investment in Affiliate (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Loss Per Share (Tables) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Organization and Description of the Business (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Liquidity (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Summary of Significant Accounting Policies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Other Current Assets - Schedule of Other Current Assets (Details) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - Convertible Notes Payable (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Stockholders' Equity (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Related Party Transactions (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - Investment in Affiliate (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - Investment in Affiliate - Summary of Amount Recorded in the Consolidated Financial Statements (Details) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - Commitments and Contingencies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - Loss Per Share - Schedule of Basic Loss Per Common Share Potential Dilutive Securities (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - Loss Per Share - Schedule of Anti-Dilutive Warrants (Details) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - Subsequent Events (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 gbs-20201231_cal.xml XBRL CALCULATION FILE EX-101.DEF 9 gbs-20201231_def.xml XBRL DEFINITION FILE EX-101.LAB 10 gbs-20201231_lab.xml XBRL LABEL FILE Collaborative Arrangement and Arrangement Other than Collaborative [Axis] Technology Transfer Agreement Global License [Memer] Related Party [Axis] Life Science Biosensor Diagnostics Pty Ltd [Memer] Statistical Measurement [Axis] Maximum [Member] Minimum [Member] Sale of Stock [Axis] IPO [Member] Equity Components [Axis] Common Stock [Member] Class of Stock [Axis] Series B Convertible Preferred Stock and Series A Warrant [Member] Series B Warrant [Member] Award Type [Axis] Year Two [Member] Year Three [Member] Debt Instrument [Axis] Convertible Note [Member] Glucose Biosensor Systems [Member] Class of Warrant or Right [Axis] 5 Year Non-Transferrable Warrant [Member] Exchange Agreement [Member] Series B Convertible Preferred Stock [Member] Legal Entity [Axis] BiosensX [Memer] Ownership [Axis] Antidilutive Securities [Axis] Warrants - Series A [Member] Warrants - Series B [Member] Preferred Stock [Member] Additional Paid In Capital [Member] Accumulated Deficit [Member] Other Comprehensive (Loss) Income [Member] Noncontrolling Interest [Member] Scenario [Axis] Underwriter Option [Member] Series A Warrants [Member] Series B Warrants [Member] Additional Common Stock [Member] Consolidated Entities [Axis] Life Science Biosensor Diagnostics Pty Ltd [Member] Underwriters Warrants [Member] Pre IPO Warrants [Member] Warrant [Member] Preferred stock - Series A [Member] Preferred stock - Series B [Member] Subsequent Event Type [Axis] Subsequent Event [Member] Harvard College [Memer] Research Collaboration Agreement [Member] Receipt of Initial Invoice [Member] 90 Day Anniversary [Member] 180 Day Anniversary [Member] Cover [Abstract] Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Entity Current Reporting Status Entity Interactive Data Current Entity Filer Category Entity Small Business Flag Entity Emerging Growth Company Entity Ex-Transition Period Entity Shell Company Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Current assets: Cash and cash equivalents Deferred charges Other current assets Total current assets Investment in affiliate TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Accounts payable and accrued expenses Related party payables Convertible notes payable Total current liabilities Employee benefit liabilities Total liabilities Commitments and contingencies - Note 10 Shareholders' equity (deficit): Preferred stock, $0.01 par value, 10,000,000 shares authorized, 3,000,000 and 2,370,891 shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively Common stock, $0.01 par value, 100,000,000 shares authorized, 10,422,497 and 8,630,000 shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Total consolidated group equity (deficit) Non-controlling interests Total shareholders' equity (deficit) TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] Revenues Other income: Government support income Shared services Total revenues Operating expenses: General and administrative expenses Development and regulatory expenses Prospectus and capital raising expenses Total operating expenses Loss from operations Other (expense) income: Interest expense Loss from unconsolidated equity method investment Realized foreign exchange loss Interest income Total other expense Loss before income taxes Income tax (expense)/benefit Current Deferred Total income tax (expense)/benefit Net loss Net loss attributable to noncontrolling interest Net loss attributable to GBS, Inc. Other comprehensive income Foreign currency translation gain (loss) Total other comprehensive income Comprehensive net loss attributable to GBS, Inc Net loss per share, basic and diluted Weighted average shares outstanding, basic and diluted Statement [Table] Statement [Line Items] Balance, Beginning Balance, Beginning, shares Deemed dividend Issuance of convertible preferred shares Issuance of convertible preferred shares, shares Issuance costs for common and preferred shares Issuance of common stock at initial public offering Issuance of common stock at initial public offering, shares Issuance cost of common stock at initial public offering Transfer of LSBD shares from common shares to preferred shares Transfer of LSBD shares from common shares to preferred shares, shares Conversion of convertible notes into common shares at initial public offering Conversion of convertible notes into common shares at initial public offering, shares Conversion of convertible preferred shares into common shares at initial public offering Conversion of convertible preferred shares into common shares at initial public offering, shares BCF on convertible notes Series A warrants exercised to purchase common shares Series A warrants exercised to purchase common shares, shares Series A and B warrants acquired Foreign currency translation gain (loss) Net loss Balance, Ending Balance, Ending, shares Statement of Cash Flows [Abstract] Cash flows from operating activities: Adjustments to reconcile net loss to net cash used in operating activities: Loss on foreign currency translation Loss on investment in affiliate Amortization of debt discount and issuance costs Contingent beneficial conversion feature on convertible notes Changes in operating assets and liabilities: Other receivables Other current assets Accounts payable Accounts payable - related party Other long-term liabilities Net cash used in operating activities Cash flows from investing activities: Net cash used in investing activities Cash flows from financing activities: Proceeds from issuance of warrants Proceeds from warrant holders for common shares Proceeds from issuance of preferred stock Proceeds from initial public offering Payment of equity issuance costs Net cash provided by financing activities Increase in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period Non-cash investing and financing activities Reclassification of deferred charges to additional paid in capital upon completion of initial public offering Conversion of notes to common shares at initial public offering EX-101.PRE 11 gbs-20201231_pre.xml XBRL PRESENTATION FILE XML 12 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 31, 2020	Feb. 11, 2021
Cover [Abstract]
Entity Registrant Name	GBS Inc.
Entity Central Index Key	0001725430
Document Type	10-Q
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex-Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,875,222
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021

XML 13 R2.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 19,877,860	$ 427,273
Deferred charges		1,863,613
Other current assets	88,548	49,062
Total current assets	19,966,408	2,339,948
Investment in affiliate		135,692
TOTAL ASSETS	19,966,408	2,475,640
Current liabilities:
Accounts payable and accrued expenses	734,825	787,469
Related party payables	431,621	1,769,293
Convertible notes payable		5,133,706
Total current liabilities	1,166,446	7,690,468
Employee benefit liabilities	17,947
Total liabilities	1,184,393	7,690,468
Commitments and contingencies - Note 10
Shareholders' equity (deficit):
Preferred stock, $0.01 par value, 10,000,000 shares authorized, 3,000,000 and 2,370,891 shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively	30,000	23,709
Common stock, $0.01 par value, 100,000,000 shares authorized, 10,422,497 and 8,630,000 shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively	104,225	86,300
Additional paid-in capital	37,956,585	10,899,942
Accumulated deficit	(18,888,991)	(15,832,517)
Accumulated other comprehensive loss	(380,663)	(363,951)
Total consolidated group equity (deficit)	18,821,156	(5,186,517)
Non-controlling interests	(39,141)	(28,311)
Total shareholders' equity (deficit)	18,782,015	(5,214,828)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 19,966,408	$ 2,475,640

XML 14 R3.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2020	Jun. 30, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	3,000,000	2,370,891
Preferred stock, shares outstanding	3,000,000	2,370,891
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	10,422,497	8,630,000
Common stock, shares outstanding	10,422,497	8,630,000

XML 15 R4.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Other income:
Government support income	$ 283,037		$ 338,464
Shared services		(798)		121,277
Total revenues	283,037	(798)	338,464	121,277
Operating expenses:
General and administrative expenses	671,450	972,012	1,192,453	1,698,340
Development and regulatory expenses	341,820	494,667	372,758	599,848
Prospectus and capital raising expenses	187,093	236,438	353,574	142,365
Total operating expenses	1,200,363	1,703,117	1,918,785	2,440,553
Loss from operations	(917,326)	(1,703,915)	(1,580,321)	(2,319,276)
Other (expense) income:
Interest expense	(986,860)	(149,145)	(1,072,688)	(298,656)
Loss from unconsolidated equity method investment			(135,692)
Realized foreign exchange loss	(86,637)		(279,107)
Interest income	434	27	504	69
Total other expense	(1,073,063)	(149,118)	(1,486,983)	(298,587)
Loss before income taxes	(1,990,389)	(1,853,033)	(3,067,304)	(2,617,863)
Income tax (expense)/benefit
Current
Deferred
Total income tax (expense)/benefit
Net loss	(1,990,389)	(1,853,033)	(3,067,304)	(2,617,863)
Net loss attributable to noncontrolling interest	(6,425)	(16,715)	(10,830)	(23,695)
Net loss attributable to GBS, Inc.	(1,983,964)	(1,836,318)	(3,056,474)	(2,594,168)
Other comprehensive income
Foreign currency translation gain (loss)	33,856	(133,286)	(16,712)	(129,050)
Total other comprehensive income	33,856	(133,286)	(16,712)	(129,050)
Comprehensive net loss attributable to GBS, Inc	$ (1,956,533)	$ (1,986,319)	$ (3,084,016)	$ (2,746,913)
Net loss per share, basic and diluted	$ (0.23)	$ (.22)	$ (0.35)	$ (.30)
Weighted average shares outstanding, basic and diluted	8,622,724	8,510,000	8,626,362	8,510,000

XML 16 R5.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Deficit [Member]	Other Comprehensive (Loss) Income [Member]	Noncontrolling Interest [Member]	Total
Balance, Beginning at Jun. 30, 2019	$ 20,649	$ 85,100	$ 8,801,860	$ (12,668,741)	$ (216,870)	$ 637,919	$ (3,977,139)
Balance, Beginning, shares at Jun. 30, 2019	2,064,884	8,510,000
Deemed dividend			(976,308)				(976,308)
Issuance of convertible preferred shares	$ 2,590		1,939,964				1,942,554
Issuance of convertible preferred shares, shares	259,007
Issuance cost of common stock at initial public offering			(116,402)				(116,402)
Foreign currency translation gain (loss)					4,234		4,234
Net loss				(757,850)		(6,980)	(764,830)
Balance, Ending at Sep. 30, 2019	$ 23,239	$ 85,100	9,649,114	(13,426,591)	(212,636)	(6,117)	(3,887,891)
Balance, Ending, shares at Sep. 30, 2019	2,323,891	8,510,000
Balance, Beginning at Jun. 30, 2019	$ 20,649	$ 85,100	8,801,860	(12,668,741)	(216,870)	637,919	(3,977,139)
Balance, Beginning, shares at Jun. 30, 2019	2,064,884	8,510,000
Net loss							(2,617,863)
Balance, Ending at Dec. 31, 2019	$ 23,239	$ 85,100	9,649,114	(15,262,909)	(345,922)	(22,832)	(5,874,210)
Balance, Ending, shares at Dec. 31, 2019	2,323,891	8,510,000
Balance, Beginning at Sep. 30, 2019	$ 23,239	$ 85,100	9,649,114	(13,426,591)	(212,636)	(6,117)	(3,887,891)
Balance, Beginning, shares at Sep. 30, 2019	2,323,891	8,510,000
Foreign currency translation gain (loss)					(133,286)		(133,286)
Net loss				(1,836,318)		(16,715)	(1,853,033)
Balance, Ending at Dec. 31, 2019	$ 23,239	$ 85,100	9,649,114	(15,262,909)	(345,922)	(22,832)	(5,874,210)
Balance, Ending, shares at Dec. 31, 2019	2,323,891	8,510,000
Balance, Beginning at Jun. 30, 2020	$ 23,709	$ 86,300	10,899,942	(15,832,517)	(363,951)	(28,311)	(5,214,828)
Balance, Beginning, shares at Jun. 30, 2020	2,370,891	8,630,000
Issuance of convertible preferred shares	$ 4,393		3,290,352				3,294,745
Issuance of convertible preferred shares, shares	439,299
Foreign currency translation gain (loss)					(50,568)		(50,568)
Net loss				(1,072,510)		(4,405)	(1,076,915)
Balance, Ending at Sep. 30, 2020	$ 28,102	$ 86,300	14,190,294	(16,905,027)	(414,519)	(32,716)	(3,047,566)
Balance, Ending, shares at Sep. 30, 2020	2,810,190	8,630,000
Balance, Beginning at Jun. 30, 2020	$ 23,709	$ 86,300	10,899,942	(15,832,517)	(363,951)	(28,311)	(5,214,828)
Balance, Beginning, shares at Jun. 30, 2020	2,370,891	8,630,000
Net loss							(3,067,304)
Balance, Ending at Dec. 31, 2020	$ 30,000	$ 104,225	37,956,585	(18,888,991)	(380,663)	(39,141)	18,782,015
Balance, Ending, shares at Dec. 31, 2020	3,000,000	10,422,527
Balance, Beginning at Sep. 30, 2020	$ 28,102	$ 86,300	14,190,294	(16,905,027)	(414,519)	(32,716)	(3,047,566)
Balance, Beginning, shares at Sep. 30, 2020	2,810,190	8,630,000
Issuance of common stock at initial public offering		$ 12,706	21,587,307				21,600,013
Issuance of common stock at initial public offering, shares		1,270,589
Issuance cost of common stock at initial public offering			(3,867,565)				(3,867,565)
Transfer of LSBD shares from common shares to preferred shares	$ 30,000	$ (30,000)
Transfer of LSBD shares from common shares to preferred shares, shares	3,000,000	(3,000,000)
Conversion of convertible notes into common shares at initial public offering		$ 7,105	5,126,601				5,133,706
Conversion of convertible notes into common shares at initial public offering, shares		710,548
Conversion of convertible preferred shares into common shares at initial public offering	$ (28,102)	$ 28,102
Conversion of convertible preferred shares into common shares at initial public offering, shares	(2,810,190)	2,810,190
BCF on convertible notes			905,948				905,948
Series A warrants exercised to purchase common shares		$ 12	10,188				10,200
Series A warrants exercised to purchase common shares, shares		1,200
Series A and B warrants acquired			3,812				3,812
Foreign currency translation gain (loss)					33,856		33,856
Net loss				(1,983,964)		(6,425)	(1,990,389)
Balance, Ending at Dec. 31, 2020	$ 30,000	$ 104,225	$ 37,956,585	$ (18,888,991)	$ (380,663)	$ (39,141)	$ 18,782,015
Balance, Ending, shares at Dec. 31, 2020	3,000,000	10,422,527

XML 17 R6.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (3,067,304)	$ (2,617,863)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on foreign currency translation	(16,712)	(129,050)
Loss on investment in affiliate	135,692
Amortization of debt discount and issuance costs		138,209
Contingent beneficial conversion feature on convertible notes	905,948
Changes in operating assets and liabilities:
Other receivables		118,056
Other current assets	(39,486)	72,939
Accounts payable	(52,644)	(515,391)
Accounts payable - related party	(1,337,672)	2,458,158
Other long-term liabilities	17,947
Net cash used in operating activities	(3,454,231)	(474,942)
Cash flows from investing activities:
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from issuance of warrants	3,812
Proceeds from warrant holders for common shares	10,200
Proceeds from issuance of preferred stock	3,294,745	648,750
Proceeds from initial public offering	21,600,013
Payment of equity issuance costs	(2,003,952)	(116,402)
Net cash provided by financing activities	22,904,818	532,348
Increase in cash and cash equivalents	19,450,587	57,406
Cash and cash equivalents, beginning of period	427,273	197,940
Cash and cash equivalents, end of period	19,877,860	255,346
Non-cash investing and financing activities
Reclassification of deferred charges to additional paid in capital upon completion of initial public offering	1,863,613
Conversion of notes to common shares at initial public offering	5,133,706
Conversion of preferred shares into common shares	28,102
Supplemental disclosure of cash flow information:
Cash paid for income taxes
Cash paid for interest	$ 166,740	$ 170,198

XML 18 R7.htm IDEA: XBRL DOCUMENT

Organization and Description of the Business

6 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of the Business

NOTE 1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS

On June 23, 2020, The Company entered into a Technology Transfer Agreement global license with LSBD. The significant terms of the license agreement are:

●

The Company has the exclusive worldwide rights to a biosensor strip for antibodies against SARS-CoV-2 and associated application for reading devices to:

	○	act as the authorized party for the purpose of processing the application of, and obtaining any, regulatory approval for the Licensed Product, including being authorized to process the approval for an investigational device required for the purpose of carrying out clinical studies.
	○	manufacture, promote, market, import, offer, sell, and distribute the Licensed Products.
	○	provide reasonable customer support services on the use of the Licensed Products to end users of, and health care practitioners referring end users to, the Licensed Products.
	○	use the Licensed Products only for the purposes identified and permitted pursuant to regulatory approval; and
	○	collect data acquired from the Licensed Products

	●	The royalty rate is 13%, based upon mutually agreed sales projections on the net sales of the commercial units and dedicated reading devices. This serves as the minimum royalty and falls to 3% at the expiry of the relevant patent(s)
	●	Each additional year, the sales upon which the minimum royalty is calculated on is increased by the mutually agreed Expected Market Growth rate plus an Additional Growth Percentage rate up to 7% annually. The Additional Growth Percentage Rate is calculated and applied for 10 years
	●	In the event of a dispute, in relation to the expected market growth or additional percentage, the agreement provides for a dispute resolution by an independent third party.

There are no milestone payments.

Initial public offering

XML 19 R8.htm IDEA: XBRL DOCUMENT

Liquidity

6 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity

NOTE 2. LIQUIDITY

GBS Inc. is the global licensee and intends to commercialize COVID-19 diagnostic tests across the US, Europe, APAC and the rest of the world through appropriately qualified distributors.

XML 20 R9.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

Use of estimates

Reclassifications

Certain reclassifications have been made to prior periods to conform to current period presentation as described below.

Revenue recognition

Foreign currency translation

Income taxes

Debt issuance cost

Licensing rights

Research and development costs

Research and development costs are expensed as incurred.

Net loss per share attributable to common shareholders (“EPS”)

Recently issued but not yet effective accounting pronouncements

As the Company is an emerging growth company, it has elected to defer the adoption of new accounting pronouncements until they would apply to private companies.

Concentration of credit risk

Related parties

The Company has related party transactions with its parent LSBD. See Notes 7 and 8.

Fair value of financial instruments

The carrying value of financial instruments classified as current assets and current liabilities approximate fair value due to their liquidity and short-term nature.

XML 21 R10.htm IDEA: XBRL DOCUMENT

Other Current Assets

6 Months Ended

Dec. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

NOTE 4. OTHER CURRENT ASSETS

	December 31, 2020		June 30, 2020
Goods and services tax receivable	$	77,710	$	7,509
Prepayments		1,596		29,469
Other receivables		9,242		12,084
Total	$	88,548	$	49,062

XML 22 R11.htm IDEA: XBRL DOCUMENT

Accounts Payable and Accrued Expenses

6 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

NOTE 5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

	December 31, 2020		June 30, 2020
Accounts and other payables	$	595,549	$	483,576
Accruals		29,051		56,894
Employee liabilities (current and non-current)		128,172		246,999
Total	$	752,772	$	787,469

XML 23 R12.htm IDEA: XBRL DOCUMENT

Convertible Notes Payable

6 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Convertible Notes Payable

NOTE 6. CONVERTIBLE NOTES PAYABLE

XML 24 R13.htm IDEA: XBRL DOCUMENT

Stockholders' Equity

6 Months Ended

Dec. 31, 2020

Equity [Abstract]

Stockholders' Equity

NOTE 7. SHAREHOLDERS’ EQUITY

December 2020 Transactions

Initial public offering

In December 2020, the Company completed its initial public offering. See Note 1.

XML 25 R14.htm IDEA: XBRL DOCUMENT

Related Party Transactions

6 Months Ended

Dec. 31, 2020

Related Party Transactions

NOTE 8. RELATED-PARTY TRANSACTIONS

In December 2020, the Company completed certain financing transactions with its Parent, LSBD as described in Note 7.

XML 26 R15.htm IDEA: XBRL DOCUMENT

Investment in Affiliate

6 Months Ended

Dec. 31, 2020

Investments in and Advances to Affiliates [Abstract]

Investment in Affiliate

NOTE 9. INVESTMENT IN AFFILIATE

The investment in BiosensX (North America) Inc. is accounted for by use of the equity method in accordance with ASC 323 Investments - Equity Method and Joint Ventures.

The following table summarizes the amount recorded in the consolidated financial statements:

	December 31, 2020			June 30, 2020

Investment value	$	135,692		$	14,000
(Loss) income from the affiliate		(135,692	)		121,692
Carrying amount	$	-		$	135,692

XML 27 R16.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies

6 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 10. COMMITMENTS AND CONTINGENCIES

The Company has no material future minimum lease commitments or purchase commitments.

XML 28 R17.htm IDEA: XBRL DOCUMENT

Loss Per Share

6 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Loss Per Share

NOTE 11. LOSS PER SHARE

	Three Months Ended						Six Months Ended
	December 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019

Net loss attributable to GBS, Inc.	$	(1,983,964	)	$	(1,836,318	)	$	(3,056,474	)	$	(2,594,168	)
Basic and diluted net loss per share attributed to common shareholders	$	(0.23	)	$	(0.22	)	$	(0.35	)	$	(0.30	)
Weighted-average number of ordinary shares		8,622,724			8,510,000			8,626,362			8,510,000

Anti-dilutive warrants and preferred shares:

	Three Months Ended				Six Months Ended
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Warrants - Series A		1,459,977		-		1,459,977		-
Warrants - Series B		1,461,177		-		1,461,177		-
Warrants issued to underwriters		63,529		-		63,529		-
Pre IPO warrants		2,736,675		2,250,376		2,736,675		2,250,376
Warrants issued to parent entity		3,000,000		-		3,000,000		-
Preferred stock - Series A		-		2,323,891		-		2,323,891
Preferred stock - Series B		3,000,000		-		3,000,000		-

XML 29 R18.htm IDEA: XBRL DOCUMENT

Subsequent Events

6 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

NOTE 12. SUBSEQUENT EVENTS

XML 30 R19.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	*Basis of presentation* The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The results of operations for an interim period may not give a true indication of the results for the entire year. The June 30, 2020 consolidated balance sheet has been derived from the audited financial statements as of that date. These condensed consolidated financial statements have been derived from, and should be read in conjunction with, the Company’s audited consolidated financial statements and notes thereto as of and for the year ended June 30, 2020 included in the Company’s Registration Statement on Form S-1, File No. 333-252277 on file with the U.S. Securities and Exchange Commission (the “SEC”). There have not been any significant changes to the Company’s significant accounting policies during the six months ended December 31, 2020.
Use of Estimates	*Use of estimates* The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates.
Reclassifications	*Reclassifications* Certain reclassifications have been made to prior periods to conform to current period presentation as described below. In the comparative period (FY 2020), management determined that certain transactions involving the issuance of shares of its subsidiary that occurred during the prior year should have resulted in an adjustment to non-controlling interest (“NCI”) and Additional Paid-in-Capital (“APIC”) to reflect the difference between the fair value of the consideration received and the book value of NCI involving these changes in ownership. As a result, the Company increased its prior year APIC with an offsetting reduction to NCI of $637,056. Management concluded that this reclassification was not meaningful to the Company’s financial position for the prior year, and as such, this change was recorded in the consolidated balance sheet and statement of shareholder’s equity in the first quarter of the comparative period (FY 2020) as an out-of-period adjustment.
Revenue Recognition	*Revenue recognition* Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by delivering the promised goods or service deliverables to the customers. A good or service deliverable is transferred to a customer when, or as, the customer obtains control of that good or service deliverable. The Company currently does not generate any revenue.
Foreign Currency Translation	*Foreign currency translation* Assets and liabilities of foreign subsidiaries are translated from local (functional) currency to presentation currency (U.S. dollar) at the rate of exchange in effect on the consolidated balance sheets date; income and expenses are translated at the average rate of exchange prevailing during the year. The functional currency of GBS Inc is the United States dollar. Foreign currency movements resulted in a gain/(loss) of $33,856 and ($16,712) for the three and six months ended December 31, 2020, respectively ($133,286) and ($129,050) for the three and six months ended December 31, 2019, respectively.
Income Taxes	*Income taxes* In accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes, tax positions initially need to be recognized in the consolidated financial statements when it is more likely than not that the positions will be sustained upon examination by taxing authorities. It also provides guidance for de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. As of December 31, 2020, the Group had no uncertain tax positions that qualified for either recognition or disclosure in the consolidated financial statements. Additionally, the Group had no interest and penalties related to income taxes. The Group accounts for current and deferred income taxes and, when appropriate, deferred tax assets and liabilities are recorded with respect to temporary differences in the accounting treatment of items for financial reporting purposes and for income tax purposes. Where, based on the weight of all available evidence, it is more likely than not that some amount of the recorded deferred tax assets will not be realized, a valuation allowance is established for that amount that, in management’s judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized.
Debt Issuance Cost	*Debt issuance cost* Debt issuance costs are amortized using the effective interest rate method over the term of the loan and the amortization expense is recorded as part of interest expense of the consolidated statements of operations.
Licensing Rights	*Licensing rights* During the first quarter of the FY ended 30 June 2020, the Company had purchased the license right procurement assets from Life Science Biosensor Diagnostics Pty Ltd for an amount of $976,308 (June 30, 2019: $ nil) in relation to the development and approval process for the Glucose Biosensor Technology. The Company recorded the license at the historical carrying value in the books of LSBD which was $ nil and recorded the amount paid as a deemed dividend. The Company has agreed to pay royalties of sales & milestones payments as defined. On July 3, 2019, the Company entered into an amended and restated license agreement. There is no set expiration date for the license. However, the exclusivity of the license granted under the license agreement runs until the expiration of the patent portfolio covered by the agreement which is currently until 2033. No royalties have been incurred through to December 31, 2020 (December 31, 2019: $ nil).
Research and Development Costs	*Research and development costs* Research and development costs are expensed as incurred.
Net Loss Per Share Attributable to Common Shareholders ("EPS")	*Net loss per share attributable to common shareholders (“EPS”)* The Company calculates earnings per share attributable to common shareholders in accordance with ASC Topic 260, “Earning Per Share.” Basic net income (loss) per share attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common shareholders by weighted-average common shares outstanding during the period plus potentially dilutive common shares, such as share warrants. Potentially dilutive common shares shall be calculated in accordance with the treasury share method, which assumes that proceeds from the exercise of all warrants are used to repurchase common share at market value. The number of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. As the Company has incurred net losses in all periods, certain potentially dilutive securities, including convertible preferred stock, warrants to acquire common stock, and convertible notes payable have been excluded in the computation of diluted loss per share as the effects are antidilutive.
Recently Issued but Not Yet Effective Accounting Pronouncements	*Recently issued but not yet effective accounting pronouncements* As the Company is an emerging growth company, it has elected to defer the adoption of new accounting pronouncements until they would apply to private companies. In August 2020, the FASB issued ASU 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. Also, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and treasury stock method will be no longer available. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company does not intend to early adopt and continues to evaluate the impact of the provisions of ASU 2020-06 on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). This update requires all leases with a term greater than 12 months to be recognized on the balance sheet through a right-of-use asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for fiscal years beginning after December 15, 2021, and interim period within fiscal years beginning after December 15, 2022 as amended by ASU 2020-05 with early adoption permitted. The Company has not early adopted the standard. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects of the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company has not early adopted the standard.
Cash and Cash Equivalents	*Concentration of credit risk* The Company places its cash and cash equivalents, which may at times be in excess of the Australia Financial Claims Scheme or the United States’ Federal Deposit Insurance Corporation insurance limits, with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution.
Related Parties	*Related parties* The Company has related party transactions with its parent LSBD. See Notes 7 and 8.
Fair Value of Financial Instruments	*Fair value of financial instruments* The carrying value of financial instruments classified as current assets and current liabilities approximate fair value due to their liquidity and short-term nature.

XML 31 R20.htm IDEA: XBRL DOCUMENT

Other Current Assets (Tables)

6 Months Ended

Dec. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

	December 31, 2020		June 30, 2020
Goods and services tax receivable	$	77,710	$	7,509
Prepayments		1,596		29,469
Other receivables		9,242		12,084
Total	$	88,548	$	49,062

XML 32 R21.htm IDEA: XBRL DOCUMENT

Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

	December 31, 2020		June 30, 2020
Accounts and other payables	$	595,549	$	483,576
Accruals		29,051		56,894
Employee liabilities (current and non-current)		128,172		246,999
Total	$	752,772	$	787,469

XML 33 R22.htm IDEA: XBRL DOCUMENT

Investment in Affiliate (Tables)

6 Months Ended

Dec. 31, 2020

Investments in and Advances to Affiliates [Abstract]

Summary of Amount Recorded in the Consolidated Financial Statements

The following table summarizes the amount recorded in the consolidated financial statements:

	December 31, 2020			June 30, 2020

Investment value	$	135,692		$	14,000
(Loss) income from the affiliate		(135,692	)		121,692
Carrying amount	$	-		$	135,692

XML 34 R23.htm IDEA: XBRL DOCUMENT

Loss Per Share (Tables)

6 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Schedule of Basic Loss Per Common Share Potential Dilutive Securities

	Three Months Ended						Six Months Ended
	December 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019

Net loss attributable to GBS, Inc.	$	(1,983,964	)	$	(1,836,318	)	$	(3,056,474	)	$	(2,594,168	)
Basic and diluted net loss per share attributed to common shareholders	$	(0.23	)	$	(0.22	)	$	(0.35	)	$	(0.30	)
Weighted-average number of ordinary shares		8,622,724			8,510,000			8,626,362			8,510,000

Schedule of Anti-Dilutive Warrants

Anti-dilutive warrants and preferred shares:

	Three Months Ended				Six Months Ended
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Warrants - Series A		1,459,977		-		1,459,977		-
Warrants - Series B		1,461,177		-		1,461,177		-
Warrants issued to underwriters		63,529		-		63,529		-
Pre IPO warrants		2,736,675		2,250,376		2,736,675		2,250,376
Warrants issued to parent entity		3,000,000		-		3,000,000		-
Preferred stock - Series A		-		2,323,891		-		2,323,891
Preferred stock - Series B		3,000,000		-		3,000,000		-

XML 35 R24.htm IDEA: XBRL DOCUMENT

Organization and Description of the Business (Details Narrative) - USD ($)			6 Months Ended
	Dec. 28, 2020	Jun. 23, 2020	Dec. 31, 2020	Dec. 31, 2019
Proceeds from issuance of IPO	$ 17,732,448		$ 21,600,013
IPO [Member]
Number of shares sold	1,270,589
Payment of underwriters' discount and commissions	$ 1,714,001
Payment of offering costs	2,153,564
Deferred equity offering cost	$ 1,863,612
IPO [Member] \| Common Stock [Member]
Sale of stock, price per share	$ 17.00
Preferred stock converted	2,810,190
Convertible note converted	710,548
IPO [Member] \| Common Stock [Member] \| Year Two [Member]
Number of shares sold	2,736,675
IPO [Member] \| Common Stock [Member] \| Year Three [Member]
Number of shares sold	2,736,675
IPO [Member] \| Common Stock [Member] \| Underwriter Option [Member]
Number of shares called by warrants	63,529
Exercise price	$ 18.70
IPO [Member] \| Common Stock [Member] \| Underwriter Option [Member] \| Series A Warrants [Member]
Number of shares called by warrants	190,588
IPO [Member] \| Common Stock [Member] \| Underwriter Option [Member] \| Series B Warrants [Member]
Number of shares called by warrants	190,588
IPO [Member] \| Additional Common Stock [Member] \| Underwriter Option [Member]
Number of shares called by warrants	190,588
IPO [Member] \| Series B Convertible Preferred Stock and Series A Warrant [Member] \| Common Stock [Member]
Sale of stock, price per share	$ 8.50
IPO [Member] \| Series B Warrant [Member] \| Common Stock [Member]
Sale of stock, price per share	$ 17.00
Technology Transfer Agreement Global License [Memer] \| Life Science Biosensor Diagnostics Pty Ltd [Memer]
Royalty rate		13.00%
Expected growth percentage term		10 years
Technology Transfer Agreement Global License [Memer] \| Life Science Biosensor Diagnostics Pty Ltd [Memer] \| Minimum [Member]
Royalty rate		3.00%
Technology Transfer Agreement Global License [Memer] \| Life Science Biosensor Diagnostics Pty Ltd [Memer] \| Maximum [Member]
Expected growth percentage including additional growth percentage		7.00%
Life Science Biosensor Diagnostics Pty Ltd [Member]
Onwership percentage			54.40%

XML 36 R25.htm IDEA: XBRL DOCUMENT

Liquidity (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
Liquidity (Details Narrative) - USD ($)	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (1,990,389)	$ (1,076,915)	$ (1,853,033)	$ (764,830)	$ (3,067,304)	$ (2,617,863)
Shareholders' equity	18,782,015	$ (3,047,566)	$ (5,874,210)	$ (3,887,891)	18,782,015	$ (5,874,210)	$ (5,214,828)	$ (3,977,139)
Working capital	18,799,962				18,799,962
Accumulated deficit	$ (18,888,991)				$ (18,888,991)		$ (15,832,517)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 14: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=120409616&loc=SL4591551-111686

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3000-108585

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 20: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=120409616&loc=SL4591552-111686

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 24
-URI http://asc.fasb.org/extlink&oid=115929471&loc=d3e21930-107793

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32136-110900

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 23
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=115929471&loc=d3e21914-107793

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4568740-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4I
-URI http://asc.fasb.org/extlink&oid=120409616&loc=SL4590271-111686

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32211-110900

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 5
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=115929471&loc=d3e21711-107793

Reference 15: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4568447-111683

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(3)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(2)

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(3)

+ Details

XML 37 R26.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Accounting Policies [Abstract]
Reduction in non controlling interest			$ 637,056
Foreign currency movements gain/(loss)	$ 33,856	$ (133,286)	(16,712)	$ (129,050)
Purchase of license right					$ 976,308
Royalties

XML 38 R27.htm IDEA: XBRL DOCUMENT

Other Current Assets - Schedule of Other Current Assets (Details) - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Goods & Services Tax Receivable	$ 77,710	$ 7,509
Prepayments	1,596	29,469
Accrued Income	9,242	12,084
Total	$ 88,548	$ 49,062

XML 39 R28.htm IDEA: XBRL DOCUMENT

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Payables and Accruals [Abstract]
Accounts and other payables	$ 595,549	$ 483,576
Accruals	29,051	56,894
Employee liabilities (current and non-current)	128,172	246,999
Total	$ 752,772	$ 787,469

XML 40 R29.htm IDEA: XBRL DOCUMENT

Convertible Notes Payable (Details Narrative) - Convertible Note [Member] - Glucose Biosensor Systems [Member]	6 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Debt conversion price \| $ / shares	$ 7.23
Debt conversion number of shares converted \| shares	710,548
Debt conversion converted amount	$ 5,133,706
Debt accrued interest	0
Financing cost	$ 905,948
Maximum [Member]
Debe conversion price percentage	0.85
Minimum [Member]
Debe conversion price percentage	0.50

XML 41 R30.htm IDEA: XBRL DOCUMENT

Stockholders' Equity (Details Narrative) - Life Science Biosensor Diagnostics Pty Ltd [Memer] - USD ($)	Dec. 18, 2020	Dec. 14, 2020
Consideration period		5 years
Exchange Agreement [Member]
Conversion of stock description	In addition, the parties to the Exchange Agreement entered into a Registration Rights Agreement (the "RRA") pursuant to which the Company agreed to prepare and file within 30 days following the closing of the IPO with the Securities and Exchange Commission a registration statement to register for resale the shares of Common Stock issuable upon conversion of the Series B Convertible Preferred Stock. If and to the extent the Company fails to, among other things, file such resale registration statement or have it declared as required under the terms of the RRA, the Company will be required to pay to the holder of such registration rights partial liquidated damages payable in cash in the amount equal to the product of 1.0% multiplied by the aggregate purchase price paid by such holder pursuant to the EA. The EA and the RRA contain customary representations, warranties, agreements and, indemnification rights and obligations of the parties. This was accounted for as a modification and the par value of the common stock was reclassified to the par value of the preferred stock.
Exchange Agreement [Member] \| Series B Convertible Preferred Stock [Member]
Number of shares on exchange	3,000,000
Maximum [Member]
Consideration contributed towards research and development expense		$ 2,000,000
Common Stock [Member] \| Exchange Agreement [Member]
Shares issued upon conversion	3,000,000
5 Year Non-Transferrable Warrant [Member] \| Common Stock [Member]
Number of warrant to purchase common stock		3,000,000
Exercise price		$ 17.00

XML 42 R31.htm IDEA: XBRL DOCUMENT

Related Party Transactions (Details Narrative) - Life Science Biosensor Diagnostics Pty Ltd [Memer]	Dec. 31, 2020 USD ($)
Due to related party towards the services in connection with development	$ 599,848
Due to related party towards overhead cost reimbursement which includes salaries, rents and other related overheads	730,148
Due from related party in relation to shared labor reimbursement	$ 121,277

XML 43 R32.htm IDEA: XBRL DOCUMENT

Investment in Affiliate (Details Narrative) - $ / shares	May 29, 2020	Dec. 31, 2020	Jun. 30, 2020
Common stock, shares, issued		10,422,497	8,630,000
Common stock price per share		$ 0.01	$ 0.01
Life Science Biosensor Diagnostics Pty Ltd [Memer] \| BiosensX [Memer]
Equity interest percentage	50.00%
Life Science Biosensor Diagnostics Pty Ltd [Memer] \| BiosensX [Memer]
Common stock, shares, issued	14,000,000
Common stock price per share	$ 0.001
Equity method investment, description	Life Science Biosensor Diagnostics Pty Ltd is the parent of both the Company and BiosensX (North America), the transfer of BiosensX shares to the Company was deemed to be a common control transaction. As a result of the share transfer, the Company has significant influence over BiosensX (North America) Inc. but in accordance with ASC 810 Consolidation Life Science Biosensor Diagnostics is deemed to have control over BiosensX (North America) Inc. due to its direct ownership of 50% in BiosensX (North America) Inc. and indirect ownership of 50% in BiosensX (North America) Inc. through GBS Inc.

XML 44 R33.htm IDEA: XBRL DOCUMENT

Investment in Affiliate - Summary of Amount Recorded in the Consolidated Financial Statements (Details) - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Investments in and Advances to Affiliates [Abstract]
Investment value	$ 135,692	$ 14,000
(Loss) income from the affiliate	(135,692)	121,692
Carrying amount		$ 135,692

XML 45 R34.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies (Details Narrative)	Dec. 31, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease commitments
Purchase commitments

XML 46 R35.htm IDEA: XBRL DOCUMENT

Loss Per Share - Schedule of Basic Loss Per Common Share Potential Dilutive Securities (Details) - USD ($)	3 Months Ended			6 Months Ended
	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net loss attributable to GBS, Inc.	$ (1,983,964)	$ (1,836,318)	$ (1,836,318)	$ (3,056,474)	$ (2,594,168)	$ (2,594,168)
Basic and diluted net loss per share attributed to common shareholders	$ (0.23)	$ (.22)		$ (.35)	$ (.30)
Weighted-average number of ordinary shares	8,622,724	8,510,000	8,510,000	8,626,362	8,510,000	8,510,000

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

XML 47 R36.htm IDEA: XBRL DOCUMENT

Loss Per Share - Schedule of Anti-Dilutive Warrants (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Warrants - Series A [Member]
Antidilutive securities excluded from computation of earnings per share, amount	1,459,977		1,459,977
Warrants - Series B [Member]
Antidilutive securities excluded from computation of earnings per share, amount	1,461,177		1,461,177
Underwriters Warrants [Member]
Antidilutive securities excluded from computation of earnings per share, amount	63,529		63,529
Pre IPO Warrants [Member]
Antidilutive securities excluded from computation of earnings per share, amount	2,736,675	2,250,376	2,736,675	2,250,376
Warrant [Member]
Antidilutive securities excluded from computation of earnings per share, amount	3,000,000		3,000,000
Preferred stock - Series A [Member]
Antidilutive securities excluded from computation of earnings per share, amount		2,323,891		2,323,891
Preferred stock - Series B [Member]
Antidilutive securities excluded from computation of earnings per share, amount	3,000,000		3,000,000

XML 48 R37.htm IDEA: XBRL DOCUMENT

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
Subsequent Events (Details Narrative) - USD ($)	Feb. 11, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 05, 2021
Proceeds from issuance of warrants		$ 3,812
Subsequent Event [Member] \| Harvard College [Memer]
Milestone payable				$ 609,375
Subsequent Event [Member] \| Harvard College [Memer] \| Research Collaboration Agreement [Member] \| Receipt of Initial Invoice [Member]
Milestone payable				304,687
Subsequent Event [Member] \| Harvard College [Memer] \| Research Collaboration Agreement [Member] \| 90 Day Anniversary [Member]
Milestone payable				152,344
Subsequent Event [Member] \| Harvard College [Memer] \| Research Collaboration Agreement [Member] \| 180 Day Anniversary [Member]
Milestone payable				$ 152,344
Subsequent Event [Member] \| Series A Warrants [Member]
Proceeds from issuance of warrants	$ 502,350
Warrants issued	59,100
Number of securities called by each warrant	1
Exercise price	$ 8.50
Warrants outstanding	$ 1,402,077
Subsequent Event [Member] \| Series B Warrants [Member]
Proceeds from issuance of warrants	$ 1,364,495
Number of securities called by each warrant	1
Warrants outstanding	$ 66,382

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ᇳ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