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2. Acquisitions
 3 Months Ended
Mar. 31, 2020
Business Combinations [Abstract]  
Acquisitions

On July 15, 2019, Command Center completed its acquisition of  Legacy HQ in accordance with the terms of the Agreement and Plan of Merger dated April 8, 2019. Upon the closing of the Merger, all of the membership interests in Hire Quest Holdings, LLC were converted into the right to receive 68% of the Company’s common stock outstanding immediately after the closing, or 9,939,668 shares.

 

We accounted for the Merger as a reverse acquisition. As such, Legacy HQ is considered the accounting acquirer and Legacy HQ's historical financial statements replace Command Center’s historical financial statements following the completion of the Merger. The results of operations of both companies are included in our financial statements for all periods beginning July 15, 2019.

 

The fair value of the purchase consideration is calculated based on the Company's stock price as it is considered to be more reliable than the fair value of the membership interests of Legacy HQ, a private company. Consideration is calculated based on the Company's closing share price of $5.76 on Nasdaq on July 15, 2019.

 

The following table summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date. These estimates are preliminary, pending final evaluation of certain assets and liabilities, and therefore are subject to revisions that may result in adjustment to the values presented below:

 

Common stock     4,677,487  
Closing share price on July 15, 2019   $ 5.76  
Stock consideration   $ 26,942,325  
         
Accounts receivable   $ 10,480,907  
Cash and cash equivalents     5,376,543  
Identifiable intangible assets     17,015,857  
Other current assets     725,453  
Property, plant and equipment, net     281,186  
Right-of-use asset     1,642,695  
Current liabilities     (3,124,081 )
Lease liabilities          (1,624,461 )
Deferred tax liability     (2,930,947 )
Other liabilities     (900,827 )
Preliminary purchase price allocation   $ 26,942,325