Quarterly report pursuant to Section 13 or 15(d)

LINEAL MERGER AGREEMENT AND DIVESTITURE (Tables)

v3.20.4
LINEAL MERGER AGREEMENT AND DIVESTITURE (Tables)
6 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Schedule of net consideration received for the divestiture

The net consideration received for the divestiture was as follows:

 

Return of Series E Preferred Shares   $ 14,666,000  
Return of Series F Preferred Shares     2,434,000  
   Total net consideration   $ 17,100,000  
Schedule of assets and liabilities transferred in Redemption agreement

The following table summarizes the assets and liabilities of Lineal which were transferred from the Company to the Preferred Holders, together with Lineal, as part of the Redemption agreement:

 

Cash   $ 2,101,879  
Accounts receivable     1,673,538  
Deferred tax assets     34,000  
Cost in excess of billings     497,340  
Property and equipment     1,996,229  
Right of use asset – operating leases     710,898  
Other current assets and deposits     49,275  
Goodwill     18,314,222  
Accounts payable – trade     (260,882 )
Accrued and other liabilities     (369,448 )
Billings in excess of costs     (445,759 )
Operating lease liabilities     (710,898 )
Finance lease liabilities     (237,925 )
Notes payable     (3,545,841 )
   Net assets divested   $ 19,806,628
Schedule of consolidated statements of operations related to discontinued operations

Components of amounts reflected in the Company’s consolidated statements of operations related to discontinued operations are presented in the following table for the three and six months ended September 30, 2019.

 

    Three Months Ended     Six Months Ended  
    September 30, 2019     September 30, 2019  
Contract revenue   $ 6,285,535     $ 6,285,535  
Contract costs     (4,897,196 )     (4,897,196 )
Depreciation and amortization     (64,868 )     (64,868 )
Selling, general and administrative     (791,312 )     (791,312 )
Operating income     532,159       532,159  
Other income     263,113       263,113  
Interest expense     (33,504 )     (33,504 )
Net income from discontinued operations   $ 761,768     $ 761,768