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BUSINESS ACQUISITIONS | 3 Months Ended
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Mar. 31, 2025
BUSINESS ACQUISITIONS |
BUSINESS ACQUISITIONS | NOTE 5 – BUSINESS ACQUISITIONS DDS Rank On June 6, 2024, SEO Marketing, Inc (dba DDS Rank) (“DDS Rank” or the “Acquired Business”) and DDS Rank LLC (“DDS Rank Delaware”), a subsidiary of the Company entered into and closed an asset purchase agreement (the "DDS Asset Purchase Agreement"), for the purchase by the Company of the Acquired Business. Pursuant to the DDS Asset Purchase Agreement, and subject to the terms and conditions contained therein, at the closing, DDS Rank agreed to sell to the Company the Acquired Business, all as more fully described in the DDS Asset Purchase Agreement. The aggregate purchase price for the Acquired Business was $600,000, consisting of $200,000 in cash paid by OA SPV at closing, $200,000 in Company Series A preferred stock, and a $200,000 7% interest only secured promissory note made by DDS Rank Delaware due June 6, 2026 (the “DDS Promissory Note”). The transaction closed on June 24, 2024, when consideration was transferred by the Company and control was obtained by the Company and was accounted for as a business combination under ASC 805. The aggregate fair value of consideration for the DDS Rank acquisition was as follows:
Purchase Price: |  |  |
|  | Amount |
Cash paid to seller |  |  | 200,000 |
Notes payable issued to seller |  |  | 200,000 |
Series A preferred stock issued to seller |  |  | 200,000 |
Total purchase consideration |  | $ | 600,000 |
The following information summarizes the allocation of the fair values assigned to the assets acquired at the acquisition date:
Purchase Price Allocation |  |  |
Developed technology |  | $ | 90,000 |
Customer relationships |  |  | 360,000 |
Trademarks and Trade Names |  |  | 120,000 |
Non-Compete agreement |  |  | 30,000 |
Net assets acquired |  | $ | 600,000 |
Eastern Standard On September 20, 2024, Eastern Standard LLC (“Eastern Standard Delaware”), a Delaware limited liability company and majority owned subsidiary, entered into an Asset Purchase Agreement (“Asset Purchase Agreement”) with Eastern Standard, LLC (“Eastern Standard Pennsylvania”), a Pennsylvania limited liability company, and its individual owners. Pursuant to the Asset Purchase Agreement, Eastern Standard Delaware will purchase from Eastern Standard Pennsylvania all of Eastern Standard Pennsylvania’s assets utilized in the operation of its business of providing digital marketing services, including integrated branding, and digital customer experiences (the “Acquired Business”). Pursuant to the Asset Purchase Agreement, and subject to the terms and conditions contained therein, at the closing, Eastern Standard Pennsylvania agreed to sell to Eastern Standard Delaware the Acquired Business, all as more fully described in the Asset Purchase Agreement. The aggregate purchase price for the Acquired Business is $2,160,000. As of the closing, the Company owned 70% of Eastern Standard Delaware in exchange for $1,250,000 payable pursuant to two secured promissory notes which are guaranteed by the Company, and $410,000 of the Company’s Series A preferred stock. The entities comprising the Company’s special purpose vehicle funding program owns an aggregate of 20% of Eastern Standard Delaware in exchange for $500,000 payable in cash. Eastern Standard Pennsylvania owns a 10% roll-over equity interest in Eastern Standard Delaware. The transaction closed on October 18, 2024, when consideration was transferred by Onfolio and control was obtained by Onfolio and will be accounted for as a business combination under ASC 805. The aggregate fair value of consideration for the Eastern Standard acquisition was as follows:
Purchase Price: |  |  |
Cash |  | $ | 500,000 |
Promissory Note, net of discount |  |  | 1,250,000 |
Preferred Shares |  |  | 410,000 |
Roll-over equity |  |  | 240,000 |
Total purchase consideration |  |  | 2,400,000 |
The following information summarizes the allocation of the fair values assigned to the assets acquired at the acquisition date:
Purchase Price Allocation |  |  |
Accounts receivable |  | $ | 217,878 |
Unbilled receivables |  |  | 165,855 |
Fixed assets |  |  | 5,135 |
Website domains |  |  | 90,000 |
Customer relationships |  |  | 490,000 |
Trademarks and trade names |  |  | 530,000 |
Non-compete agreement |  |  | 20,000 |
Goodwill |  |  | 1,407,602 |
Deferred revenues |  |  | (526,470 | )
Net assets acquired |  | $ | 2,400,000 |
Unaudited Pro Forma Financial Information The following table sets forth the pro-forma consolidated results of operations for the three months ended March 31, 2024 as if the Eastern Standard and DDS Rank acquisitions occurred on January 1, 2024. The pro forma results of operations are presented for informational purposes only and are not indicative of the results of operations that would have been achieved if the acquisitions had taken place on the dates noted above, or of results that may occur in the future.
|  | Three Months ended March 31, |
|  | 2024 |
Revenue |  | $ | 2,879,342 |
Operating loss |  |  | (274,057 | )
Net loss |  |  | (323,636 | )
Net loss per common share |  | $ | (0.08 | )
Weighted Average common shares outstanding |  |  | 5,107,395 |

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