Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

v3.19.3
Acquisitions (Tables)
9 Months Ended
Sep. 30, 2019
Schedule of Change in Identified Intangible Assets The change in identified intangible assets is as follows:

 

 

Preliminary

Valuation

 

 

Revised

Valuation

 

 

Change

 

Customer lists and relationships

 

$

1,470,000

 

 

$

470,000

 

 

$

(1,000,000

)

Trade name

 

 

100,000

 

 

 

90,000

 

 

 

(10,000

)

Non-compete

 

 

200,000

 

 

 

15,000

 

 

 

(185,000

)

 

 

$

1,770,000

 

 

$

575,000

 

 

$

(1,195,000

)

 

Schedule of Definite Lived Intangible Assets

 

Definite lived intangible assets related to acquisitions, after revaluation of CDI intangible assets, are as follows, as of September 30, 2019

 

 

 

Expected

Life

 

Remaining

Months

 

Gross

Intangible

Assets

 

 

Accumulated

Amortization

 

 

Net

Intangible

Assets

 

Customer lists and relationships

 

36 to 60 months

 

25 to 47 months

 

$

2,084,515

 

 

$

(992,556

)

 

$

1,091,959

 

Drawings and Technology

 

36 months

 

0 months

 

 

760,207

 

 

 

(760,207

)

 

 

-

 

Trade name, Trademarks & other

 

24 to 36 months

 

11 to 25 months

 

 

447,274

 

 

 

(179,485

)

 

 

267,789

 

Non-compete

 

36 months

 

25 months

 

 

246,797

 

 

 

(85,827

)

 

 

160,970

 

 

 

 

 

 

 

$

3,538,793

 

 

$

(2,018,076

)

 

$

1,520,717

 

 

Definite lived intangibles assets related to acquisitions are as follows, as of December 31, 2018:

 

 

 

Expected

Life

 

Remaining

Months

 

Gross

Intangible

Assets

 

 

Accumulated

Amortization

 

 

Net

Intangible

Assets

 

Customer lists and relationships

 

36 to 60 months

 

7 to 56 months

 

$

3,084,515

 

 

$

(492,269

)

 

$

2,592,246

 

Drawings and Technology

 

36 months

 

7 months

 

 

760,207

 

 

 

(622,949

)

 

$

137,258

 

Trade name, Trademarks & other

 

24 to 36 months

 

7 to 34 months

 

 

457,274

 

 

 

(58,218

)

 

 

399,056

 

Non-compete

 

36 months

 

32 to 34 months

 

 

431,797

 

 

 

(35,100

)

 

 

396,697

 

 

 

 

 

 

 

$

4,733,793

 

 

$

(1,208,536

)

 

$

3,525,257

 

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:

 

2019

 

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

Total

 

$

174,526

 

 

$

683,935

 

 

$

556,872

 

 

$

63,231

 

 

$

42,154

 

 

$

1,520,717

 

CDI  
Summary of Final Allocation of Total Consideration to the Acquired Net Assets

The final 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

 

 

470,000

 

Trade name

 

 

90,000

 

Non-compete

 

 

15,000

 

Accounts payable

 

 

(91,997

)

Accrued expenses

 

 

(99,711

)

Deferred revenue

 

 

(95,610

)

Deferred income taxes

 

 

(258,301

)

Other accrued liabilities

 

 

(50,985

)

Working capital loan

 

 

(370,096

)

Total fair value excluding goodwill

 

 

546,071

 

Goodwill

 

 

4,295,361

 

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 three and nine month periods ended September 30, 2019 and 2018 as if these two acquisitions occurred on January 1, 2018.

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

 

$

14,938,964

 

 

$

14,466,775

 

 

$

39,883,099

 

 

$

37,100,798

 

Net income (loss)

 

$

544,901

 

 

$

1,466,393

 

 

$

(1,994,461

)

 

$

(410,840

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related pro forma net income (loss) per

   share attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

0.11

 

 

$

(0.13

)

 

$

(0.03

)

Diluted

 

$

0.03

 

 

$

0.10

 

 

$

(0.13

)

 

$

(0.03

)

 

Bressner Technology  
Summary of Final 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 Bressner Technology GmbH is as follows:

 

Cash

 

$

560,932

 

Accounts receivable

 

 

2,238,881

 

Inventory

 

 

3,721,685

 

Prepaid expenses and deposits

 

 

124,491

 

Fixed assets

 

 

346,637

 

Customer relationships

 

 

1,215,798

 

Trade name

 

 

329,515

 

Non-compete - Josef Bressner

 

 

231,797

 

Accounts payable and accrued expenses

 

 

(2,076,450

)

Notes payable

 

 

(2,536,148

)

Deferred tax liability

 

 

(43,499

)

Total fair value excluding goodwill

 

 

4,113,639

 

Goodwill

 

 

1,489,722

 

Total allocated purchase price

 

$

5,603,361