Quarterly report pursuant to Section 13 or 15(d)

ACQUISITION (Tables)

v3.21.2
ACQUISITION (Tables)
9 Months Ended
Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]  
SCHEDULE OF RECOGNIZED IDENTIFIED ASSETS ACQUIRED AND LIABILITIES ASSUMED

A preliminary estimate of the assets acquired, and liabilities assumed as of the acquisition date consists of the following:

 

Assets acquired:        
Cash   $ 71,000  
Restricted cash     2,000,000  
Property and equipment     348,000  
Right of use asset     1,391,000  
Tradename/trademark intangible     410,000  
Franchise rights intangible     410,000  
Goodwill     51,000  
Security deposits and other assets     126,000  
Total assets acquired   $ 4,807,000  
         
Liabilities assumed        
Gift card liability   $ 139,000  
Deferred revenue     36,000  
Deferred grant income     2,000,000  
Right of use liability     1,438,000  
Total liabilities assumed   $ 3,613,000  
         
Net purchase price   $ 1,194,000  
SCHEDULE OF ESTIMATED FAIR VALUE ASSUMPTIONS

 

   

2021

 
Volatility     90.00 %
Risk free rate     0.08% - 0.20 %
Stock price     0.52  
Credit spread     6.35 %
SCHEDULE OF PRO FORMA ACQUISITION

The following unaudited pro forma information reflects the impact of the acquisition as if it had closed on January 1, 2020.

 

 

    Nine months ended September 30, 2021    

Nine months ended

September 30, 2020

 
Total revenue   $ 16,229,033     $ 17,645,760  
Operating loss   $ (2,829,004 )   $ (10,907,158 )
Net loss   $ (2,728,921 )   $ (25,551,202 )
Net loss per share (basic and diluted)   $ (0.18 )   $ (1.89 )

 

The unaudited pro forma statement of operations data for the nine months ended September 30, 2021, excludes the approximately $8.0 million of income recognized for RRF grant monies received as discussed above and $3.0 million gain on extinguishment of debt with a related-party, both recorded by Pie Squared.