BUSINESS COMBINATION (Tables)

9 Months Ended

Dec. 31, 2022

Schedule of assets acquired and liabilities assumed recognized at acquisition date


									Adjusted
	Reported at		ERTC		Customer		Fixed		Totals
	August 25,		refundable		claim² ^and		Asset		August 25,
	2021		credit¹		Warrant³		Valuation⁴		2021
Total consideration transferred	$	10,163,164			$	46,256			$	10,209,420
Recognized amounts of identifiable assets acquired and liabilities assumed:
Accounts receivable		1,247,015								1,247,015
Inventory		927,188								927,188
Other current assets		4,323,593		1,093,661						5,417,254
Property, plant, and equipment and right of use assets		15,074,273						897,488		15,971,761
Accounts payable, accrued expenses, and other current liabilities		(5,882,048)		(164,049)		(606,415)				(6,652,512)
Lease obligations		(6,701,286)								(6,701,286)
Net assets		8,988,735		929,612		(606,415)		897,488		10,209,420
Goodwill		1,174,429		(929,612)		652,671		(897,488)		—
Total	$	10,163,164	$	—	$	46,256	$	—	$	10,209,420

All measurement period adjustments were offset against goodwill:

¹In calendar year 2021 our Stadco subsidiary filed for a refund of tax credits for $1,093,661 from the IRS under the Employee Retention Credit, or ERTC program. Fees associated with the filing totaled $164,049.

²Customer claim of $471,166 accrued for additional costs incurred in connection with a certain product manufacturing project. Other adjustments to current liabilities totaled $135,249.

³Warrant issued to former shareholder in connection with the acquisition valued at $46,256.

⁴Fixed asset adjustments related to changes in preliminary valuation assumptions and estimates, including estimates of asset useful lives.

Schedule of pro forma results


	Pro forma combined
	Nine months ended
	December 31,
	2021
Net sales	$	19,441,005
Operating loss	$	(2,793,821)
Loss before income taxes	$	(1,880,903)
Net loss	$	(1,496,049)
EPS basic	$	(0.04)
EPS dilutive	$	(0.04)
Weighted average shares outstanding – basic and diluted		34,212,032