Annual report pursuant to Section 13 and 15(d)

BUSINESS COMBINATION (Tables)

v3.22.1
BUSINESS COMBINATION (Tables)
12 Months Ended
Dec. 31, 2021
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following summarizes the purchase price allocation for all prior year and current year’s acquisitions:

 

   

2020 Purchase Prairie Tech

   

2020 Purchase CMS

   

2020 Purchase BSS

 
                         

Cash consideration

  $ 185,000     $ 410     $ -  

Note payable

    310,000       170,000       230,000  

Total purchase price

  $ 495,000     $ 170,410     $ 230,000  
                         

Deposits and other assets

  $ 32,896     $ -     $ -  

Customer list

    406,000       274,115       230,000  

Operating lease right-of-use assets

    64,863       -       -  

Goodwill

    107,852       13,000       -  

Total assets acquired

    611,611       287,115       230,000  
                         

Deferred revenue

    (51,748

)

    (111,705

)

    -  

Contingent liability

    -       (5,000

)

    -  

Operating lease liability

    (64,863

)

    -       -  

Net assets acquired

  $ 495,000     $ 170,410     $ 230,000  

 

   

2021

Purchase

CTS

   

2021

Purchase

PSI

   

2022

Purchase

DTS

(Preliminary)

 
                         

Cash consideration

  $ -     $ 145,703     $ 500,000  

Note payable

    130,000       450,000       835,000  

Total purchase price

  $ 130,000     $ 595,703     $ 1,335,000  
                         

Deposits and other assets

  $ -     $ -     $ -  

Customer list

    130,000       695,641       1,335,000  

Operating lease right-of-use assets

    -       -       -  

Goodwill

    -       -       -  

Total assets acquired

    130,000       695,641       1,335,000  
                         

Deferred revenue

    -       (99,938 )     -  

Contingent liability

    -       -       -  

Operating lease liability

    -       -       -  

Net assets acquired

  $ 130,000     $ 595,703     $ 1,335,000  

 

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited pro forma information does not purport to present what the Company’s actual results would have been had the acquisitions occurred on January 1, 2020, nor is the financial information indicative of the results of future operations. The following table represents the unaudited consolidated pro forma results of operations for the years ended December 31, 2021 and 2020 as if the acquisitions occurred on January 1, 2020 and 2021. Operating expenses have been increased for the amortization expense associated with the estimated fair value adjustment as of December 31, 2020 of expected definite lived intangible assets and interest on the notes payable.

 

Pro Forma

 

Year Ended

December 31,

2021

   

Year Ended

December 31,

2020

 

Net revenues

  $ 43,888,590     $ 45,165,265  

Cost of revenues

    25,730,512       26,267,816  

Operating expenses

    17,733,536       18,214,985  

Income before taxes

    424,543       682,464  

Net income

  $ 139,866     $ 506,434  

Basic and diluted income per common share

  $ 0.03     $ 0.11