Veneto Acquisition (Tables)

3 Months Ended

Oct. 31, 2018

Notes to Financial Statements

Summary of Acquisition

	“First Closing” completed on October 3, 2018		“Second Closing” completed on November 1, 2018		Total
Cash and cash equivalents	$	2,410,150	$	—	$	2,410,150
Accounts receivable, net		1,935,078		—		1,935,078
Inventory, net		1,068,856		—		1,068,856
Prepaid expenses		95,803		—		95,803
Property and equipment, net		652,590		—		652,590
Other receivables		1,014,316		—		1,014,316
Notes receivable - LT		1,387,763		—		1,387,763
Other assets, net		61,348		—		61,348
Intangible assets, net		—		7,110,000		7,110,000
Total assets acquired		8,625,905		7,110,000		15,735,905
Total current liabilities		2,509,887		—		2,509,887
Notes payable		—		3,403,948		3,403,948
Total liabilities assumed		2,509,887		3,403,948		5,913,835
Net identifiable assets acquired		6,116,018		3,706,052		9,822,070
Goodwill		8,883,982		16,293,948		25,177,930
Total consideration transferred	$	15,000,000	$	20,000,000	$	35,000,000

Estimated amortization expense

	Preliminary Fair Value		Average Estimated Life		Amortization for Year Ended July 31, 2018
Developed Software/Technology	$	780,000		5	$	156,000
Referral Base		3,920,000		15		261,333
Non-compete agreements		2,410,000		3		803,333
	$	7,110,000			$	1,220,667