BUSINESS ACQUISITIONS

12 Months Ended

Mar. 31, 2022

NOTE 7 – BUSINESS ACQUISITIONS

Club Fitness, LLC

On April 1, 2021, the Company entered into an agreement for the acquisition of 100% of the equity interest in Club Fitness LLC. The purchase price was $125,000 in cash. The acquisition closed in April 2021.



Consideration
Cash	$	125,000

Fair values of identifiable net assets:
Property & equipment:
Gym equipment	$	76,689

Intangible assets:
Customer relationships		46,311

Total fair value of identifiable net assets	$	125,000

The Company analyzed the acquisition under applicable guidance and determined that the acquisition should be accounted for as a business combination. The fair value of the net identifiable assets consisted of gym equipment of $76,689. The Company assigned a fair value of $46,311 in intangible assets – customer relationships. The intangible assets – customer relationships are being amortized over their estimated life, currently expected to be three years.

The Company analyzed the acquisition under applicable guidance and determined that the acquisition should be accounted for as a business combination. The intangible assets - licenses are being amortized over their estimated life, currently expected to be five years.

On January 25, 2022, the Company entered into an agreement for the acquisition of 100% of the equity interest in Spartan Fitness, however, on August 2, 2022 both parties mutually agreed to terminate the acquisition/sale of Spartan Fitness. Consequently, the Company recorded stock compensation expense of $150,000 in connection with the issuance of 50,000 shares of B2Digital common stock. Also, the Company recorded $293,727 in management expense paid to Chris Conolley, the owner of Spartan Fitness.