Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

v3.21.1
Acquisitions (Tables)
 3 Months Ended
Mar. 31, 2021
Business Combinations [Abstract]  
Schedule of Fair Value of Assets Assumed and Liabilities Acquired

The following table summarizes the provisional fair value of the assets assumed and liabilities acquired and the provisional purchase price allocation on the date of acquisition:

 

Assets Acquired:                
Cash   $ 229,000          
Accounts receivable     207,000     $ 436,000  
Liabilities Assumed:                
Current liabilities     (241,000 )        
Long-term liabilities     (90,000 )     (331,000 )
Intangible assets (provisional)             1,122,000  
Goodwill (provisional)             3,723,000  
Purchase Price           $ 4,950,000  
Schedule of Amortization Expense for Future Periods for Intangible Assets

The following table summarizes the amortization expense for both Verb Direct and Ascend to be recorded in future periods for intangible assets that are subject to amortization and excludes intangible assets with infinite life (i.e. domain names) of $442,000:

 

Year ending   Amortization  
2021 remaining   $ 1,065,000  
2022     1,375,000  
2023     1,302,000  
2024     465,000  
2025 and thereafter     133,000  
Total amortization   $ 4,340,000  
Schedule of Pro Forma Statements of Operations

The following unaudited pro forma statement of operations present the Company’s pro forma results of operations for the quarters ended March 31, 2020 to give effect to the acquisition of Ascent Certification as if it had occurred on January 1, 2020.

 

    Quarter Ended
March 31,
2020		  
   

(Proforma,

unaudited)

  
SaaS recurring subscription revenue   $ 1,312,000  
Other digital revenue     400,000  
Design, printing, and fulfilment     728,000  
Shipping     169,000  
Total Revenue     2,609,000  
         
Cost of revenue     1,122,000  
         
Gross margin     1,487,000  
         
Operating expenses     5,412,000  
         
Other income, net     1,914,000  
         
Net loss     (2,011,000 )
         
Deemed dividend to Series A preferred     (3,951,000 )
         
Net loss to common stockholders   $ (5,962,000 )
Schedule of Results of Operation of Subsidiary

Pursuant to the provisions of ASC 805, the following results of operations of Verb Acquisition subsequent to the acquisition are as follows:

 

   

Verb

Acquisition

September 1,

2020 through March 31,

2021

  
    (unaudited)  
Revenue   $ 439,000  
Cost of revenue     202,000  
Operating expenses     1,295,000  
Other income / (expense)     -  
Net loss   $ (1,058,000 )