Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

v3.10.0.1
Acquisitions (Tables)
9 Months Ended
Sep. 30, 2018
Schedule of Definite Lived Intangible Assets

Definite lived intangible assets as of September 30, 2018:

 

 

 

Expected Life

 

Average

Remaining

Life

 

Gross

Intangible

Assets

 

 

Accumulated

Amortization

 

 

Net

Intangible

Assets

 

Drawings and technology

 

3 years

 

1.0 years

 

$

760,207

 

 

$

(559,597

)

 

$

200,610

 

Customer lists and relationships

 

3 years

 

1.0 years

 

 

398,717

 

 

 

(293,500

)

 

 

105,217

 

Trademarks,  URLs and other

 

3 years

 

1.0 years

 

 

27,759

 

 

 

(21,162

)

 

 

6,597

 

 

 

 

 

 

 

$

1,186,683

 

 

$

(874,259

)

 

$

312,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Definite lived intangible assets as of December 31, 2017:

 

 

 

Expected Life

 

Average

Remaining

Life

 

Gross

Intangible

Assets

 

 

Accumulated

Amortization

 

 

Net

Intangible

Assets

 

Drawings and technology

 

3 years

 

1.5 years

 

$

760,207

 

 

$

(369,545

)

 

$

390,662

 

Customer lists and relationships

 

3 years

 

1.5 years

 

 

398,717

 

 

 

(193,821

)

 

 

204,896

 

Trademarks,  URLs and other

 

3 years

 

1.5 years

 

 

27,759

 

 

 

(14,912

)

 

 

12,847

 

 

 

 

 

 

 

$

1,186,683

 

 

$

(578,278

)

 

$

608,405

 

 

Schedule of Amortization Expense of Definite Lived Intangible Assets

The amortization expense of the definite lived intangible assets for the years remaining is as follows:

 

 

 

 

 

 

 

2018

 

 

2019

 

 

Total

 

 

 

 

 

 

 

$

98,660

 

 

$

213,764

 

 

$

312,424

 

 

Concept Development, Inc.  
Schedule of Definite Lived Intangible Assets

Definite lived intangible assets as of September 30, 2018:

 

 

 

Expected Life

 

Remaining

Life

 

Gross

Intangible

Assets

 

 

Accumulated

Amortization

 

 

 

 

Net

Intangible

Assets

 

Customer lists and

   relationships

 

60 months

 

59 months

 

$

1,470,000

 

 

$

(24,500

)

 

 

 

$

1,445,500

 

Trade name

 

24 months

 

23 months

 

 

100,000

 

 

 

(4,167

)

 

 

 

 

95,833

 

Non-compete

 

36 months

 

35 months

 

 

200,000

 

 

 

(5,556

)

 

 

 

 

194,444

 

 

 

 

 

 

 

$

1,770,000

 

 

$

(34,222

)

 

 

 

$

1,735,778

 

 

Schedule of Amortization Expense of Definite Lived Intangible Assets

The amortization expense of the definite lived intangible assets for the years remaining is as follows:

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

2022

 

 

Thereafter

 

 

Total

 

$

102,667

 

 

$

410,667

 

 

$

394,000

 

 

$

338,444

 

 

$

294,000

 

 

$

196,000

 

 

$

1,735,778

 

 

Summary of Allocation of Total Consideration to the Acquired Net Assets

The preliminary allocation of the total consideration to the acquired net assets as of the acquisition date for CDI is as follows:

 

Cash

$

139,634

 

Accounts receivable

 

489,267

 

Prepaid expenses

 

45,683

 

Inventories

 

205,635

 

Property and equipment

 

45,026

 

Deposits and other

 

12,526

 

Customer lists and relationships

 

1,470,000

 

Trade name

 

100,000

 

Non-compete

 

200,000

 

Accounts payable

 

(91,997

)

Accrued expenses

 

(99,711

)

Deferred revenue

 

(95,610

)

Deferred income taxes

 

(295,065

)

Other accrued liabilities

 

(50,985

)

Working capital loan

 

(370,096

)

Total fair value excluding goodwill

 

1,704,307

 

Goodwill

 

3,137,125

 

Total consideration

$

4,841,432

 

 

Schedule of Unaudited Consolidated Pro Forma Information

The following unaudited consolidated pro forma information presents the results of operations for the nine month period ended September 30, 2018 and for the year ended December 31, 2017 as if the acquisition occurred on January 1, 2017.

 

 

Nine Months

Ended

September 30,

2018

 

 

Year Ended

December 31,

2017

 

Revenue

$

25,056,963

 

 

$

31,418,213

 

Net (loss) income

$

(866,063

)

 

$

596,637

 

 

 

 

 

 

 

 

 

Acquisition-related pro forma net (loss)

   income per share attributable to common

   stockholders

 

 

 

 

 

 

 

Basic

$

(0.07

)

 

$

0.09

 

Diluted

$

(0.07

)

 

$

0.05

 

 

Ion Software and Services  
Summary of Allocation of Total Consideration to the Acquired Net Assets

The allocation of the total consideration to the acquired net assets as of the acquisition date for Ion is as follows:

 

Equipment at estimated fair value

 

$

297,700

 

Amount paid

 

 

(67,000

)

Gain on acquisition of equipment to be recognized over the three year contract service

   period

 

$

230,700