Annual report pursuant to Section 13 and 15(d)

Acquisition of Urbane New Haven, LLC Assets

v3.23.1
Acquisition of Urbane New Haven, LLC Assets
12 Months Ended
Dec. 31, 2022
Acquisition of Urbane New Haven, LLC Assets  
Acquisition of Urbane New Haven, LLC Assets

21. Acquisition of Urbane New Haven, LLC Assets

In October 2022, the Company acquired substantially all the business assets of Urbane New Haven, LLC, a premier real estate firm specializing in all phases of development and construction, including architecture, design, contracting, and marketing. The purchase price for the Urbane New Haven, LLC’s assets was 300,000 of the Company’s common shares. An independent third-party valuation was performed in accordance with FASB ASC 805 and the fair value of the shares was deemed to be $996,000. The fair value was allocated $474,600 to fixed assets, $391,000 to goodwill (which is deductible for tax purposes) and $130,400 to the trade name. In accordance with the asset purchase agreement, under certain circumstances the Company will be required to pay the seller 20% of the net proceeds, as defined, of certain real estate development projects completed by the Company until such time that the principal former owner is no longer employed by the Company. Any future payments will be expensed and included in net income.