Quarterly report pursuant to Section 13 or 15(d)

7. Acquisition

v3.20.2
7. Acquisition
 9 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Acquisition

Note 7 – Acquisition

 

On March 15, 2019, the Company entered into and closed an asset purchase agreement with AVX Design & Integration, Inc. (“AVX”) as stated in Note 1. A summary of the purchase price and the purchase price allocations at fair value is below.

 

Purchase price      
Cash   $ 550,000  
29,286 shares of common stock (1)     290,716  
Secured promissory note     50,000  
Total purchase price   $ 890,716  
         
Allocation of purchase price        
Cash   $ 201,482  
Accounts receivable     234,561  
Inventories     16,000  
Property and equipment     10,381  
Operating lease right-of-use assets     157,213  
Deposits     5,968  
Intangible assets     57,000  
Goodwill     458,016  
Accounts payable and accrued liabilities     (81,478 )
Operating lease liability     (168,427 )
Purchase price   $ 890,716  

 

(1) – the fair value of the common stock was calculated based on the closing market price of the Company’s common stock at the date of acquisition.