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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
SCHEDULE OF PREVIOUSLY REPORTED CONSOLIDATED STATEMENTS OF OPERATIONS

 

                
   Three Months Ended March 31, 2022 
   As Reported   Adjustment   As Corrected 
             
Basic earnings (loss) per share   1.95    0.51    2.46 
                
Diluted earnings (loss) per share   (6.30)   (3.39)   (9.69)
                
Weighted average number of shares outstanding – Basic   1,215,016    (234,447)   980,569 
                
Weighted average number of shares outstanding - Diluted   1,573,285    (377,805)   1,195,480 
SCHEDULE OF RESTRICTED CASH IN STATEMENT OF CASH FLOW

The reconciliation of cash and restricted cash reported within the applicable balance sheet accounts that sum to the total of cash and restricted cash presented in the statement of cash flows is as follows:

 

   March 31, 2022   March 31, 2021 
Cash  $5,491,407   $9,432,070 
Restricted cash   484,351    585,906 
Total cash and restricted cash  $5,975,758   $10,017,976 
SCHEDULE OF PROPERTY AND EQUIPMENT

 

  Useful Life (in years)
Computer equipment   5
Office equipment and furniture   7
Leasehold improvements   Shorter of the useful life or the lease term
SCHEDULE OF FAIR VALUE OF WARRANT COMMITMENT

 

     March 31, 2022     December 31, 2021 
Stock price  $4.31   $6.44 
Volatility   90%   90%
Time to expiry   5    5 
Dividend yield   0%   0%
Risk free rate   2.4%   1.10%
SCHEDULE OF RECONCILES WARRANT COMMITMENT

The following reconciles the fair values of the liability classified warrants:

 

     Series B Warrant Commitment     Series B warrant liabilities     Placement agent warrants   Total 
   March 31, 2022 
   Series B Warrant Commitment   Series B warrant liabilities   Placement agent warrants   Total 
Beginning balance  $37,652,808   $-   $-   $37,652,808 
Initial recognition   -    55,061,119    1,525,923    56,587,042 
Unrealized (gain) loss   17,408,311    (31,980,437)   (946,461)   (15,518,587)
Warrants exercised or transferred   (55,061,119)             (55,061,119)
Ending balance  $-   $23,080,682   $579,462   $23,660,144 

 

     Series B Warrant Commitment     Total 
    December 31, 2021 
   Series B Warrant Commitment   Total 
Beginning balance  $-   $- 
Initial recognition   20,244,497    20,244,497 
Unrealized (gain) loss   17,408,311    17,408,311 
Warrants exercised or transferred   -    - 
Ending balance  $37,652,808   $37,652,808 
SCHEDULE OF GAIN OR LOSSES RECOGNIZED FAIR VALUE

 

     March 31, 2022     December 31, 2021 
Beginning balance - January 1  $3,813,878   $2,931,418 
           
Acquisitions and Settlements:   -    - 
JP Kush Acquisition   -    1,694,166 
CCS Write-off   -    (81,368)
Altruis partial settlement   -    (452,236)
    -    - 
Period adjustments:          
Fair value changes and accretion included in earnings*   407,071    (278,102) 
           
Ending balance   $4,220,949   $3,813,878 

 

* Recorded as a reduction to general and administrative expenses
SCHEDULE OF FAIR VALUE MEASUREMENTS

Significant unobservable inputs used in the earn-out fair value measurements of the Company’s contingent consideration liabilities designated as Level 3 are as follows:

 

   March 31, 2022   December 31, 2021 
Fair value  $4,220,949   $3,813,878 
Valuation technique   Discounted cash flow    Discounted cash flow 
Significant unobservable input   Projected revenue and probability of achievement    Projected revenue and probability of achievement 
SCHEDULE OF DISAGGREGATION REVENUE

The following table disaggregates the Company’s revenue by line of business, showing commissions earned:

 

Three Months ended March 31, 2022  Medical/Life   Property and Casualty   Total 
Regular            
EBS  $221,184   $-   $221,184 
USBA   13,587    -    13,587 
CCS/UIS   -    43,881    43,881 
Montana   506,721    -    506,721 
Fortman   332,600    197,260    529,860 
Altruis   1,304,872    -    1,304,872 
Kush   438,591    -    438,591 
Medigap   1,177,085    -    1,177,085 
   $3,994,640   $241,141   $4,235,781 

 

Three Months ended March 31, 2021  Medical/Life   Property and Casualty   Contingent commission   Total 
Regular                    
EBS   208,994    -              -    208,994 
USBA   12,225    -    -    12,225 
CCS/UIS   -    88,818    -    88,818 
Montana   535,116    -    -    535,116 
Fortman   249,801    207,772    -    457,573 
Altruis   1,021,004    -    -    1,021,004 
    2,027,140    296,590    -    2,323,730 
SUMMARIZES THE CHANGES TO THE PREVIOUSLY ISSUED FINANCIAL INFORMATION

 

Account  3/31/2021
As reported		   Adjustment   3/31/2021
Adjusted		 
Earn-out liability-Closing balance as of December 31, 2020   2,631,418    300,000    2,931,418 
Goodwill-Closing balance as of December 31, 2020   9,265,070    (503,345)   8,761,725 
Common stock issuable-Closing balance as of December 31, 2020   822,116    (482,116)   340,000 
Additional paid-in-capital-Closing balance as of December 31, 2020   11,377,123    182,116   11,559,239 
Accumulated Deficit-Closing balance as of December 31, 2020   (12,482,281)   122,601    (12,359,680)
Common stock issuable   482,116    (482,116)   - 
Accumulated Deficit   (13,123,609)   150,003    (12,973,606)
Additional paid-in-capital   25,810,147    182,116    25,992,263 
Commission income   2,296,328    27,402    2,323,730 
Total Revenue   2,296,328    27,402    2,323,730 
Net Loss   (641,328)   27,402    (613,926)
EPS   (0.09)   (0.01)   (0.08)