XML 19 R10.htm IDEA: XBRL DOCUMENT v3.23.1
NOTE 4 - ACQUISITIONS
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
NOTE 4 - ACQUISITIONS

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   $1,250,000 
1,461,653 shares of common stock    550,000 
Total Purchase Price   $1,800,000 

 

Smartbiz

 

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

 

An additional 754,684 shares of common stock were issued to the seller in December 2022 in accordance with the terms of the purchase agreement.

 

 

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)
Accumulated deficit   (74,834)
      
Non-controlling interest   (36,669)
Total accumulated deficit   (38,165)
Goodwill  $1,838,165 

 

Unaudited combined proforma results of operations for the year ended December 31, 2022 and 2021 as though the Company acquired Smartbiz and Whisl on January 1, 2021, are set forth below:

                 
   Years Ended
   December 31,
   2022  2021
Revenues  $103,353,405   $77,483,732 
Cost of revenues   101,717,011    74,237,359 
Gross profit   1,636,394    3,246,373 
           
Operating expenses   5,762,097    6,102,433 
Operating loss   (4,125,703)   (2,856,060)
           
Other expense   (2,674,101)   (880,112)
           
Net Loss  $(6,799,804)  $(3,736,172)