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NOTE 4 - ACQUISITION
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]    
NOTE 4 - ACQUISITION

NOTE 4 – ACQUISITIONS

 

On May 13, 2022, we entered into a Company Acquisition Agreement (Purchase Agreement) with US Acquisitions, LLC, a California limited liability company (Seller) concerning the contemplated sale by Seller and the purchase by us of 51% of the membership interests Seller held in Whisl, a Texas limited liability company. Whisl provides local US termination for Voice through its FCC license of VoIP Service number 832742; and is in the process to obtain a C-Lec FCC License over next 12 months. Whisl is one of the premier Intermediate Voice Providers in the USA. It has been a carrier since 2017 with billions of minutes traversing its network and provides its customers with multiple levels of Redundancy, Diversity, and Disaster Recovery for their applications and ability to make changes to underlying carrier configuration in real time. Whisl offers a single carrier solution for Voice Global services, and its customers benefit from hundreds of interconnection agreements that the company has cultivated since its inception. Pursuant to the Purchase Agreement, the closing of the purchase of the 51% membership interests was $1,800,000, which consisted of $1,250,000 in cash and $550,000 in our restricted common stock to Seller, which amounts to 1,461,653 shares of common stock.

 

On June 1, 2022, we entered into a Purchase Agreement for the purchase of 51% of the membership interests in Smartbiz, a Florida Corporation which provides telecommunication services, dedicated to VoIP business for wholesale and retail markets. The purchase price for the acquisition was $1,800,000, which consisted of $800,000 in cash and $1,000,000 in our common stock to the seller, which amounts to 2,850,330 shares of common stock.

 

Smartbiz and Whisl have been included in our consolidated results of operations since the acquisition dates.

 

The following table summarizes the fair value of the consideration paid by the Company:

 

Whisl

 

   May 13,
Fair Value of Consideration:  2022
Cash  $1,000,000 
Payable to seller   250,000 
1,461,653 shares of common stock   550,000 
Total Purchase Price  $1,800,000 

 

Smartbiz

 

   June 1,
Fair Value of Consideration:  2022
Cash   $725,000 
Payable to seller    75,000 
2,850,330 shares of common stock     1,000,000 
Total Purchase Price   $1,800,000 

 

 

The following table summarizes the identifiable assets acquired and liabilities assumed upon acquisition of Smartbiz and Whisl and the calculation of goodwill:

 

Whisl

 

         
Total purchase price  $1,800,000 
Cash   141,113 
Accounts receivable   109,762 
Total identifiable assets   250,875 
      
Accounts payable   (241,426)
Other current liabilities   (2,075)
Total liabilities assumed   (243,501)
Net assets   7,374 
      
Non-controlling interest   3,613 
Total net assets   3,761 
Goodwill  $1,796,239 

 

 

Smartbiz

 

         
Total purchase price  $1,800,000 
Cash   19,755 
Accounts receivable   789,515 
Total identifiable assets   809,270 
      
Accounts payable   (807,265)
Other current liabilities   (76,839)
Total liabilities assumed   (884,104)
Net assets   (74,834)
      
Non-controlling interest   (36,669)
Total net assets   (38,165)
Goodwill  $1,838,165 

 

Unaudited combined proforma results of operations for the nine months ended September 30, 2022 and 2021 as though the Company acquired Smartbiz and Whisl on January 1, 2021, are set forth below:

                 
   Nine Months Ended
   September 30,
   2022  2021
Revenues  $69,165,130   $59,028,492 
Cost of revenues   66,683,557    56,430,726 
Gross profit   2,481,573    2,597,766 
          
Operating expenses   4,322,526    4,724,857 
Operating loss   (1,840,953)   (2,127,091)
           
Other expense   (38,073)   (820,593)
           
Net Loss  $(1,879,026)  $(2,947,684)

 

NOTE 4 - ACQUISITION

 

IoT Labs

 

On April 15, 2020, we entered into a Company Acquisition Agreement (the “Agreement”) with Francisco Bunt regarding the acquisition of 51% of the shares in IoT Labs, whose principal business activity is the sale of Short Messages (SMS) between USA and Mexico, for $180,000.

 

The following table summarizes the identifiable assets acquired and liabilities assumed upon acquisition of IoT Labs and the calculation of goodwill:

         
Total purchase price  $180,000 
Cash   135,781 
Other current assets   953 
Property and equipment   34,075 
Intangible asset   21,875 
Total identifiable assets   192,684 
Accounts payable   (100)
Total liabilities assumed   (100)
Net assets   192,584 
Non-controlling interest   94,366 
Total net assets   98,218 
Goodwill  $81,782 

 

Unaudited combined proforma results of operations for the year ended December 31, 2020 as though the Company acquired IoT Labs on January 1, 2020, are set forth below:

         
   December 31,
   2020
Revenues  $55,784,168 
Cost of revenues   54,631,017 
Gross profit   1,153,151 
      
Operating expenses   4,224,903 
Operating loss   (3,071,752)
      
Other expense   (3,487,315)
Net Loss  $(6,559,067)