Quarterly report pursuant to Section 13 or 15(d)

ACQUISITION OF TOPPOP (Tables)

v3.22.2
ACQUISITION OF TOPPOP (Tables)
3 Months Ended
Mar. 31, 2022
ACQUISITION OF TOPPOP (Tables)  
Schedule of Fair Value of Acquisition

Purchase price:

 

 

 

Cash, net of cash acquired

 

$ 3,694,273

 

Fair value of common stock

 

 

10,143,744

 

Contingent consideration

 

 

20,204,505

 

Note payable

 

 

5,042,467

 

Total purchase price

 

 

39,084,989

 

 

 

 

 

 

Assets acquired:

 

 

 

 

Accounts receivable

 

 

5,432,608

 

Furniture and equipment

 

 

1,848,580

 

Inventory

 

 

1,194,936

 

Equipment deposit

 

 

320,810

 

Security deposit

 

 

131,529

 

Tradename / Trademarks

 

 

6,867,000

 

IP/Technology

 

 

849,000

 

Non-compete agreement

 

 

807,200

 

Customer Base

 

 

14,414,000

 

Total assets acquired:

 

 

31,865,663

 

 

 

 

 

 

Liabilities assumed:

 

 

 

 

Accounts payable

 

 

(2,435,412 )

Notes payable

 

 

(5,927,380 )

Deferred revenue

 

 

(394,759 )

Total Liabilities assumed

 

 

(8,757,551 )

Net assets acquired

 

 

23,108,112

 

Excess purchase price “Goodwill”

 

$ 15,976,877

 

Schedule of Acquisition of Intangible Assets

Intangible assets consist of the following:

 

 

 

 

 

 

 

 

Estimated Useful

 

March 31,

 

 

December 31,

 

 

 

Lives

 

2022

 

 

2021

 

Tradename - Trademarks

 

5 years

 

$ 6,867,000

 

 

$ 6,867,000

 

Intellectual Property

 

5 years

 

 

849,000

 

 

 

849,000

 

Customer Base

 

10 years

 

 

14,414,000

 

 

 

14,414,000

 

Non-Competes

 

4 years

 

 

807,200

 

 

 

807,200

 

 

 

 

 

 

22,937,200

 

 

 

22,937,200

 

Less: accumulated amortization

 

 

 

 

2,124,214

 

 

 

1,327,614

 

 

 

 

 

$ 20,812,986

 

 

$ 21,609,586

 

Schedule of Acquisition of Future Amortization of Intangible Assets

Future amortization of intangible assets for the remainder of the current fiscal year and the next five years and thereafter:

 

Amount

 

Remainder of the year ended December 31, 2022

 

$ 2,389,800

 

2023

 

 

3,186,400

 

2024

 

 

3,186,400

 

2025

 

 

3,102,317

 

2026

 

 

2,341,600

 

Thereafter

 

 

6,606,469

 

 Total

 

$ 20,812,986