Annual report pursuant to Section 13 and 15(d)

ORGANIZATION AND ACQUISITIONS, BUSINESS PLAN, AND LIQUIDITY (Tables)

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ORGANIZATION AND ACQUISITIONS, BUSINESS PLAN, AND LIQUIDITY (Tables)
12 Months Ended
Dec. 31, 2022
Organization, Consolidation, Business Combination, And Presentation Of Financial Statements [Abstract]  
Schedule of Purchase Price Allocation
The Company accounted for the acquisition as follows:
Purchase price $ 6,072,366 
Allocation of purchase price:
Accounts receivable, net $ 1,134,909 
Right of use asset $ 1,197,310 
Property and equipment $ 229,058 
Goodwill $ 3,444,926 
Intangible assets $ 1,276,000 
Accrued expenses $ (12,527)
Right of use liability $ (1,197,310)
The Company accounted for the acquisition as follows:

Purchase price $ 7,671,557 
Allocation of purchase price:
 Cash $ 622,641 
Accounts receivable, net $ 2,666,811 
Contract receivable $ 494,456 
Prepayments and other assets $ 38,086 
Property and equipment $ 403,008 
Right of use asset $ 82,408 
Goodwill $ 4,135,006 
Intangible assets $ 3,659,000 
Accrued expenses $ (2,361,302)
Contract liabilities $ (1,071,399)
Right of use liability $ (82,408)
Deferred tax liability $ (914,750)
The Company accounted for the acquisition as follows:
Purchase price $ 10,058,536 
Allocation of purchase price:
Cash $ 950,690 
Accounts receivable, net $ 1,676,208 
Prepayments and other assets $ 42,752 
Property and equipment $ 9,351 
Goodwill $ 7,090,054 
Intangible assets $ 1,762,500 
Accrued expenses $ (1,032,394)
Deferred tax liability $ (440,625)
Schedule of Pro Forma Information
The following pro-forma amounts reflect the Company’s results as if the acquisition of Emerald had occurred on January 1, 2021. These pro-forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of the acquisition to reflect the additional amortization of intangibles.

For the Years Ended
December 31,
2022 2021
Revenue $ 78,711,382  $ 88,251,443 
Net loss $ (13,268,226) $ (1,694,783)
The following pro-forma amounts reflect the Company’s results as if the acquisition of the 2WR Entities had occurred on January 1, 2020. These pro-forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of the acquisition to reflect the additional amortization of intangibles.
For the Years Ended
December 31,
2022 2021
Revenue 67,029,934  66,802,623 
Net income (loss) (14,327,334) 196,595