Quarterly report pursuant to Section 13 or 15(d)

MERGER AGREEMENT (Tables)

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MERGER AGREEMENT (Tables)
6 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of consideration paid for the acquisition

The consideration paid for the acquisition was as follows: 

 

Series E Preferred Shares   $ 18,701,000  
Series F Preferred Shares     1,417,000  
   Total consideration   $ 20,118,000  
Schedule of current values of the assets and liabilities of Lineal as of the Merger

The allocation of the preliminary purchase price to the assets and liabilities acquired from the Merger is based on the current values of the assets and liabilities of Lineal as of the Merger date on July 8, 2019 and are as follows:

 

Cash   $ 449,763  
Accounts receivable     2,776,477  
Deferred tax assets     34,000  
Cost in excess of billings     944,250  
Property and equipment     1,436,920  
Right of use asset – operating leases     913,396  
Other current assets and deposits     60,132  
Goodwill     17,992,118  
Accounts payable – trade     (400,889 )
Accrued and other liabilities     (893,013 )
Operating lease liabilities     (913,396 )
Finance lease liabilities     (313,472 )
Loan Payable – shareholder     (492,337 )
Notes payable     (1,475,949 )
   Net assets acquired   $ 20,118,000  

 

Schedule of pro-forma consolidated results of operations

The following schedule contains pro-forma consolidated results of operations for the three and six months ended September 30, 2019 and 2018 as if the acquisition occurred on April 1, 2018. The pro forma results of operations are presented for informational purposes only and are not indicative of the results of operations that would have been achieved if the acquisition had taken place on April 1, 2018, or of results that may occur in the future.

 

    Three Months Ended September 30, 2019     Three Months Ended September 30, 2018     Six Months Ended September 30, 2019     Six Months Ended September 30, 2018  
Revenue   $ 6,726,043     $ 5,868,154     $ 12,264,466     $ 10,234,586  
Operating income (loss)     (625,426 )     23,374,978       (2,314,344 )     19,433,893  
Net income (loss)     (312,403 )     22,757,458       (1,975,521 )     17,821,311  
Income (loss) per common share - basic   $ (4.47 )   $ 16,946.73     $ (22.15 )   $ 20,333.50  
Income (loss) per common share - diluted   $ (4.47 )   $ 5,026.74     $ (22.15 )   $ 4,205.84