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15) Acquisitions
 9 Months Ended
Sep. 30, 2018
Notes  
15) Acquisitions

15) Acquisitions

 

On June 1, 2018, the Company completed a stock purchase transaction with Beta Capital Corp. ("Beta Capital") and Ronald D. Maxson ("Maxson"), the sole owner of all the outstanding shares of common stock of Beta Capital, to purchase all of the outstanding shares of common stock of Beta Capital.  Beta Capital is engaged in the operation of a factoring business with the principal purpose of providing funding for funeral homes and mortuaries. 

 

Under the terms of the transaction, as set forth in the Stock Purchase Agreement dated June 1, 2018, by and among the Company, Beta Capital and Maxson, the Company paid Maxson the purchase consideration at the closing of the transaction equal to the sum of (i) $890,000 in cash plus (ii) the accounts receivable value of $2,515,783, representing the total amount of the Company's outstanding receivables as of the closing date of June 1, 2018, for a total closing payment of $3,405,783. From the $3,405,783 closing payment, a holdback amount equal to $175,000 was deposited into an interest bearing escrow account to be held for a period of eighteen months from the closing date to pay off any uncollected accounts receivable and other liabilities of Beta Capital as of the closing date.

 

The estimated fair values of the assets acquired the date of acquisition were as follows:

 

Other investments - insurance assignments

$     2,515,783

Other - intangible asset

          890,000

Total assets acquired

       3,405,783

Fair value of net assets acquired/consideration paid

$     3,405,783

 

The Company determined that the estimated fair value of the customer list intangible asset acquired was equal to the consideration paid less the insurance assignments value.