Annual report pursuant to Section 13 and 15(d)

Acquisition (Tables)

v3.19.1
Acquisition (Tables)
12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the aggregate purchase price consideration paid:
 
 
 
Edison Nation
 
 
 
 
 
 
 
 
Best Party
 
 
 
Holdings, LLC
 
 
Cloud B, Inc.
 
 
 
Pirasta, LLC
 
 
Concepts, LLC
 
Cash paid
 
 
950,000
 
 
 
-
 
 
$
-
 
 
$
-
 
Fair value of issued shares
 
 
3,384,285
 
 
 
2,664,200
 
 
 
-
 
 
 
-
 
Fair value of reserved shares
 
 
6,014,250
 
 
 
-
 
 
 
-
 
 
 
-
 
Issuance of debt
 
 
1,428,161
 
 
 
-
 
 
 
-
 
 
 
-
 
Settlement of due from related party
 
 
-
 
 
 
-
 
 
 
470,000
 
 
 
500,000
 
Fair value of contingent consideration
 
 
-
 
 
 
520,000
 
 
 
-
 
 
 
-
 
Purchase consideration
 
 
11,776,696
 
 
 
3,184,200
 
 
 
470,000
 
 
 
500,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Separately Recognized Transactions [Table Text Block] The following table summarizes the preliminary purchase price allocation of fair values of the assets acquired and liabilities assumed at the date of acquisition:
 
 
 
Edison Nation
 
 
 
 
 
 
 
 
Best Party
 
 
 
Holdings, LLC
 
 
Cloud B, Inc.
 
 
 
Pirasta, LLC
 
 
Concepts, LLC
 
Cash and cash equivalents
 
$
68,681
 
 
$
104,744
 
 
$
3,629
 
 
$
365
 
Accounts receivable
 
 
15,958
 
 
 
636,755
 
 
 
7,696
 
 
 
6,906
 
Inventory
 
 
-
 
 
 
566,500
 
 
 
36,537
 
 
 
139,918
 
Other assets
 
 
39,691
 
 
 
172,747
 
 
 
-
 
 
 
4,356
 
Property and equipment
 
 
1,852
 
 
 
53,345
 
 
 
-
 
 
 
10,931
 
Goodwill
 
 
5,497,242
 
 
 
3,884,432
 
 
 
354,836
 
 
 
-
 
Intangible assets
 
 
6,400,000
 
 
 
6,600,000
 
 
 
-
 
 
 
-
 
Total assets acquired
 
 
12,023,424
 
 
 
12,018,523
 
 
 
402,698
 
 
 
162,476
 
Debt
 
 
-
 
 
 
1,400,000
 
 
 
-
 
 
 
-
 
Accounts payable
 
 
227,025
 
 
 
5,748,797
 
 
 
2,052
 
 
 
34,041
 
Accrued expenses and other liabilities
 
 
19,703
 
 
 
527,526
 
 
 
119,198
 
 
 
513,502
 
Total liabilities assumed
 
 
246,728
 
 
 
7,676,323
 
 
 
121,250
 
 
 
547,543
 
Noncontrolling interest
 
 
-
 
 
 
1,158,000
 
 
 
-
 
 
 
(192,534
)
Distribution to shareholder
 
 
-
 
 
 
-
 
 
 
(188,552
)
 
 
(692,533
)
 
 
 
11,776,696
 
 
 
3,184,200
 
 
 
470,000
 
 
 
500,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Pro Forma Information [Table Text Block]
 
The following represents the pro forma consolidated income statement as if the acquisitions had been included in the consolidated results of the Company for the entire years ending
December 31, 2018 and 2017:
 
 
 
Years Ended December 31,
 
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
Revenues, net   
 
$
20,988,594
 
 
$
24,402,376
 
Cost of revenues   
 
 
13,566,605
 
 
 
16,289,352
 
Gross profit   
 
 
7,421,989
 
 
 
8,113,024
 
 
 
 
 
 
 
 
 
 
Operating expenses:   
 
 
 
 
 
 
 
 
Selling, general and administrative   
 
 
13,144,691
 
 
 
8,890,638
 
Operating (loss) income   
 
 
(5,722,702
)
 
 
(777,614
)
 
 
 
 
 
 
 
 
 
Other (expense) income:   
 
 
 
 
 
 
 
 
Other (expense) income
 
 
(398,406
)
 
 
(325,017
)
(Loss) income before income taxes
 
 
(6,249,968
)
 
 
(452,597
)
Income tax expense
 
 
304,298
 
 
 
135,570
 
Net (loss) income
 
$
(6,554,266
)
 
$
(588,167
)
Net (loss) income attributable to noncontrolling interests
 
 
(415,466
)
 
 
(506,616
)
Net (loss) income attributable to Edison Nation, Inc.
 
 
(6,138,801
)
 
 
(81,551
)
Net (loss) income per share - basic and diluted
 
$
(1.09
)
 
$
(0.02
)
Weighted average number of common shares outstanding – basic and diluted
 
 
5,654,930
 
 
 
4,046,377