Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Sale and Deconsolidation of GMI and Discontinued Operations (Tables)

v3.23.1
Note 2 - Sale and Deconsolidation of GMI and Discontinued Operations (Tables)
 3 Months Ended
Mar. 31, 2023
Notes Tables  
Disposal Groups, Including Discontinued Operations, Consideration Received [Table Text Block]

Consideration

  

Amount

  

Description and Valuation Methodology
Cash at closing  

$

935,974

  

Cash received at closing less estimated value of transition services to be provided.
Cash after closing     133,148   Actual cash operating expenses of GMI from March 1 through March 17, 2023 (prior to the transfer of GMI to GMDC)
GMDC common stock    

581,000

   Based on Series A preferred stock issuance to other GMDC investors for $3,000,000 in cash and application of an option pricing model backsolve method and a minority interest discount to estimate the fair value of the common shares of GMDC.

Contingent payments

    

682,000

   Estimated by applying a discount rate of 40.8% to the projected cash receipts expected over the 7-year horizon. (See Note 5)

Total consideration

  

$

 2,332,122    
Disposal Groups, Including Discontinued Operations [Table Text Block]
   

2023

    

2022

  

Costs of customer contract fulfillment

   $ 74,223     $ 320,405  

Operating expenses -

                

Salaries and benefits

     484,249       234,848  

Intangibles amortization

     85,338       306,789  

Stock based compensation, before forfeitures

     65,487       82,210  
Forfeitures of stock option     (407,322 )     -  

Other operating expenses

     134,633       151,666  

Change in fair value of contingent consideration

     -       12,609  

Gain on sale of GMI

     (100,615 )     -  

Loss before income tax benefit

     (335,993 )     (1,108,527 )

Income tax benefit

     -       1,189,579  

Net (loss) income on discontinued operations

   $ (335,993 )   $ 81,052  
   

December 31,
2022

  

Customer relationship intangible asset, net of amortization

   $ 1,057,722  

Technology intangible asset, net of amortization

     760,698  

Capitalized software development costs

     498,425  

Total assets of discontinued operations

   $ 2,316,845