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NTN BUZZTIME, INC TRANSACTION (Tables) | 3 Months Ended
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Mar. 31, 2021
NTN BUZZTIME, INC TRANSACTION [Abstract] |
Purchase Price Calculation | The purchase price, which represents the consideration transferred in the merger to NTN’s stockholders, is calculated based on the fair value of the common stock of the combined company that NTN’s stockholders owned as of the closing date of the merger because that represents a more reliable measure of the fair value of consideration transferred in the merger. Accordingly, the purchase price of $8,177,614, which was calculated as follows:
Number of shares of the Common Stock owned by NTN stockholders (i) |  |  | 1,514,373 |
Multiplied by the fair value per share of Common Stock (ii) |  |  | 5.40 |
Total purchase price |  | $ | 8,177,614 |
| (i) | The purchase price was determined based on the number of shares of common stock of the combined company that NTN’s stockholders owned immediately prior to the merger.
| (ii) | The fair value per share is based on the closing price of $5.40 (post reverse stock split) per share of thecommon stock as reported on the NYSE American on March 25, 2021, the date of the merger.
Tangible and Intangible Assets Acquired And Liabilities Assumed, Based on Estimated Fair Values | The preliminary allocation of the estimated purchase price to the tangible and intangible assets acquired and liabilities assumed from NTN, based on their estimated fair values as of March 25, 2021, is as follows:
|  | Historical Balance Sheet of NTN at March 25, 2020 |  |  | Pro Forma Fair Value Adjustment to NTN Assets |  |  | Preliminary Purchase Price Allocation Pro Forma Adjustment |
Cash and cash equivalents |  | $ | 147,728 |  |  | $ | - |  |  | $ | 147,728 |
Accounts receivable |  |  | 102,517 |  |  |  | - |  |  |  | 102,517 |
Prepaid expense and other current assets |  |  | 329,596 |  |  |  | - |  |  |  | 329,596 |
Property and equipment, net |  |  | 1,015,370 |  |  |  | - |  |  |  | 1,015,370 |
Software development costs |  |  | 1,296,460 |  |  |  | (368,460 | ) |  |  | 928,000 |
Customers |  |  | - |  |  |  | 548,000 |  |  |  | 548,000 |
Trade name |  |  | - |  |  |  | 299,000 |  |  |  | 299,000 |
Accounts payable, accrued liabilities and other current liabilities |  |  | (3,781,173 | ) |  |  | - |  |  |  | (3,781,173 | )
Net assets acquired, excluding goodwill |  | $ | (889,502 | ) |  | $ | 478,540 |  |  | $ | (410,962 | )
Total consideration |  | $ | 8,177,614 |  |  |  |  |  |  |  |  |
Net assets acquired, excluding goodwill |  |  | (410,962 | ) |  |  |  |  |  |  |  |
Goodwill |  | $ | 8,588,576 |  |  |  |  |  |  |  |  |
Disposition Details | In the Disposition, the Company sold specified NTN assets and liabilities acquired as a result of the reverse acquisition to eGames.com, an unrelated party, for cash consideration of $2,000,000. Details of the Disposition are as follows:
Proceeds from sale: |  |  |
Cash |  | $ | 132,055 |
Escrow |  |  | 100,000 |
Assume advance/loans |  |  | 1,700,000 |
Interest on advance/loans |  |  | 67,945 |
Carrying value of assets sold: |  |  |  |
Cash and cash equivalents |  |  | (13,461 | )
Accounts receivable |  |  | (75,153 | )
Prepaids and other current assets |  |  | (123,769 | )
Property and equipment, net |  |  | (1,013,950 | )
Software development costs |  |  | (927,368 | )
Customers |  |  | (548,000 | )
Trade name |  |  | (299,000 | )
Goodwill |  |  | (8,588,576 | )
Other assets |  |  | (103,173 | )
Liabilities transferred upon sale: |  |  |  |
Accounts payable and accrued expenses |  |  | 113,156 |
Obligations under finance leases |  |  | 16,676 |
Lease liability |  |  | 25,655 |
Deferred revenue |  |  | 54,803 |
Other current liabilities |  |  | 148,987 |
Transaction costs |  |  | (265,000 | )
Total loss on sale of assets |  | $ | (9,598,173 | )
Pro Forma Financial Information | Pro forma information primarily reflects adjustments relating to the reversal of transaction costs. Assuming that the merger had been completed as of January 1, 2020, the transaction costs would have been expensed in the prior period.
|  | Three Months Ended March 31, |
|  | 2021 |  |  | 2020 |
Net loss attributable to common stockholders |  | $ | (17,702,334 | ) |  | $ | (1,019,212 | )
Basic and diluted net loss per share attributable to common stockholders |  | $ | (0.64 | ) |  | $ | (0.06 | )

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