Annual report pursuant to Section 13 and 15(d)

Note 6 - Fair Value Measurements (Tables)

v3.23.1
Note 6 - Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2022
Notes Tables  
Fair Value, Assets Measured on Recurring Basis [Table Text Block]
   

December 31, 2022

 
   

Level 1

   

Level 2

   

Level 3

   

Total

 

Cash equivalents:

                               

Money market funds

  $ 58,242     $ -     $ -     $ 58,242  

Other liabilities:

                               

Fair value of contingent consideration

  $ -     $ -     $ -     $ -  
   

December 31, 2021

 
   

Level 1

   

Level 2

   

Level 3

   

Total

 

Cash equivalents:

                               

Money market funds

  $ 1,600,663     $ -     $ -     $ 1,660,663  

Other liabilities:

                               

Fair value of contingent consideration

  $ -     $ -     $ 930,000     $ 930,000  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

December 31, 2020

  $ -  

Change in fair value

    930,000  

December 31, 2021

    930,000  

Change in fair value

    (930,000 )

December 31, 2022

  $ -  
Fair Value Measurements, Nonrecurring [Table Text Block]
   

2022

   

2021

 

Impairment of long-lived assets

               

Intangible assets

  $ 3,649,193     $ -  

Right of use assets

    113,722       -  
      3,762,915       -  

Impairment of goodwill

    6,460,168       -  

Total

  $ 10,223,083     $ -  
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

Consideration

 

Amount

 

Description and Valuation Methodology

Cash, net

  $ 935,000  

Cash at closing of $1 million less estimated value of transition services to be provided.

Buyer stock

    581,000  

Based on estimated post-money valuation of GMI after SP investment, applying a minority interest discount.

Contingent payments

    682,000  

Annual cash payments, over approximately seven years, up to a total of $4 million, equal to 5% of GMI’s net revenue. Applied a discount rate of 40.8% to projected revenue.

Net working capital

    302,000  

Carrying value approximates fair value.

Estimated fair value of reporting unit

  $ 2,500,000