Annual report pursuant to Section 13 and 15(d)

CONTINGENT CONSIDERATION LIABILITY (Tables)

v3.19.1
CONTINGENT CONSIDERATION LIABILITY (Tables)
 12 Months Ended
Dec. 31, 2018
Contingent Consideration Liability  
Contingent consideration
One-Year Anniversary     Probability     Revenue-Based     Probability-  
Date Revenue     Payment     Amounts     Weighted  
                     
$ 3,200,000       0.00 %   $ 800,000     $ –  
$ 2,000,000       0.50 %   $ 200,000       1,000  
$ 1,599,999       99.50 %   $ –       –  
Fair Value of Expected Earn-out Payment               1,000    
Discount Rate                       25 %
Payments                     $ 0  
Present Value Factor at 20% Discount Rate for 12 Months                       0.9457  
Present Value of Contingent Consideration                     $ 946  
Performance-based cash consideration
Year 1 Revenue   $ 16,666,666  
Less:     12,000,000  
         
    $ 4,666,666  
      0.44742864  
         
Performance-Based Cash Payment   $ 2,088,000  
The summary of contingent consideration
    Amount  
Contingent Consideration Summary :      
       
Balance at December 31, 2016   $ 12,085,859  
Change in Fair Market Valuation of Contingent Consideration     4,348,761  
         
Balance at March 31, 2017 and April 1, 2017   $ 16,434,620  
         
Contingent Consideration Detail :        
         
Performance-Based Cash Contingent Consideration   $ 2,088,000  
Market-Based Stock Contingent Consideration     14,346,620  
         
Balance at March 31, 2017 and April 1, 2017   $ 16,434,620  
The summary of additional market-based contingent consideration clawbacks
Contingent Consideration Balance at March 31, 2017   $ 16,434,620  
         
Change in Fair Market Valuation of Contingent Consideration     77,286  
Payment of Contingent Consideration in Cash     (2,088,000 )
Settlement of Contingent Consideration     (4,739,638 )
Settlement of Contingent Consideration Recorded Against Additional Paid-In Capital     (4,692,697 )
Gain on Settlement of Contingent Consideration     (4,991,571 )
         
Contingent Consideration December 31, 2017 and Thereafter   $ -