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COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

 

Legal Contingencies

 

The Company is subject to various legal proceedings and claims, either asserted or unasserted, arising in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any of these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows, and accordingly, no legal contingencies are accrued as of June 30, 2022 and December 31, 2021. Litigation relating to the insurance brokerage industry is not uncommon. As such the Company, from time to time have been, subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future.

 

Earn-out liabilities

 

The following outlines changes to the Company’s earn-out liability balances inclusive of accumulated accretion for the respective period ended June 30, 2022 and December 31, 2021:

SCHEDULE OF EARN-OUT LIABILITY

   CCS   Fortman   Montana   Altruis   Kush   Barra   Total 
Ending balance December 31, 2021  $-   $515,308   $615,969   $992,868   $1,689,733   $-   $3,813,878 
Changes due to acquisitions   -    -    -    -    -    600,000    600,000 
Changes due to payments             (326,935)   (84,473)             (411,408)
Changes due to fair value adjustments   -    32,620    37,741    -    334,602    (50,000)   354,963 
Ending balance June 30, 2022  $-   $547,928   $326,775   $908,395   $2,024,335   $550,000   $4,357,433 

 

   CCS   Fortman   Montana   Altruis   Kush   Total 
Ending balance December 31, 2020  $81,368   $432,655   $522,553   $1,894,842   $-   $2,931,418 
Changes due to business combinations   -    -    -    -    1,694,166    1,694,166 
Changes due to payments   -    -    -    (452,236)   -    (452,236)
Changes due to fair value adjustments   -    82,653    93,416    (449,738)   (4,433)   (278,102)
Changes due to write-offs   (81,368)   -    -    -    -    (81,368)
Ending balance December 31, 2021  $-   $515,308   $615,969   $992,868   $1,689,733   $3,813,878