| Schedule of acquisition consideration |
Acquisition Consideration:
| |
|
May 1, 2017 |
|
|
Measurement |
|
|
August 31, |
|
| |
|
(As initially
reported)
|
|
|
Period
Adjustments (1) |
|
|
2017
(As adjusted) |
|
| Cash |
|
$ |
1,500,000 |
|
|
$ |
— |
|
|
$ |
1,500,000 |
|
| Fair value of common shares issued to CMP members |
|
|
19,500,000 |
|
|
|
— |
|
|
|
19,500,000 |
|
| Promissory notes |
|
|
660,216 |
|
|
|
6,572 |
|
|
|
666,788 |
|
| Estimated fair value contingent cash consideration |
|
|
1,735,375 |
|
|
|
169,625 |
|
|
|
1,905,000 |
|
| Estimated fair value contingent equity consideration |
|
|
10,763,760 |
|
|
|
1,088,640 |
|
|
|
11,852,400 |
|
| Total estimated acquisition consideration |
|
$ |
34,159,351 |
|
|
$ |
1,264,837 |
|
|
$ |
35,424,188 |
|
|
(1) |
As of August 31, 2017, the Company revised its estimate of the contingent cash consideration from $1,735,375 to $1,905,000, and the Company revised its estimate of the contingent equity consideration from $10,763,760 to $11,852,400, to reflect the increased probability of the sellers of CMP reaching the maximum earnouts available. An additional post-closing adjustment of $6,572 was recorded, which resulted in an increase of the promissory notes from $660,216 to $666,788. The balance of the note payable at February 28, 2018 reflects principal payments of $333,395 made to the sellers of CMP. The balance of the contingent cash consideration $1,650,000 as of February 28, 2018, reflects a decrease of $255,000 due to cash payments made to the sellers of CMP. |
|