Quarterly report pursuant to Section 13 or 15(d)

Business Combination

Business Combination
6 Months Ended
Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Business Combination

Note 13 – Business Combination


On January 6, 2023, the Company completed the business combination of AT Tech Systems for a purchase price of $1 in cash. The Company’s intangible assets were acquired from AT Tech Systems due to customer relationships using the multi-period excess earnings method. Amortization on the intangible assets was fully amortized during the six months ended June 30, 2023. A bargain purchase gain is recognized when the net assets acquired in a business combination have a higher fair value than the consideration paid. The result of AT Tech Systems’ operations has been included in the condensed consolidated financial statement since that date.


The following table summarizes the purchase consideration and fair value of the assets acquired and liabilities assumed as of January 6, 2023:

Accounts receivable   $ 33,007  
Intangible assets     28,741  
Total assets acquired   $ 61,747  
Accounts payable   $  
Total liabilities assumed      
Purchase Price     (1 )
Total bargain purchase gain   $ 61,747  


As a result of above information that existed as of the combination date, the Company recorded a bargain purchase gain of $61,747 during the six months ended June 30, 2023.


The excess of the aggregate net fair value of assets acquired and liabilities assumed over the fair value of consideration transferred as the purchase price has been recorded as a bargain purchase gain. Upon completion of the valuation of the acquired assets, the Company concluded that recording a bargain purchase gain with respect to AT Tech Systems was appropriate and required under U.S. GAAP. The Company believes the seller was motivated to complete the transaction as part of an overall repositioning of its business.