Acquisitions (Tables)

9 Months Ended

Apr. 30, 2020

Components of acquired intangible assets

The components of the acquired intangible assets were as follows:

	Preliminary Fair Value		Average Estimated Life
Tradename / Trademarks	$	103,000		15
IP/Technology		41,500		5
Business Contracts		346,800		15
Customer Base		274,600		10
Non-compete agreement		356,700		3
	$	1,112,600

Components of purchase consideration

The components of the purchase consideration as of April 30, 2020 and 2019 is as follows:

Balance Sheet Components	As of April 30, 2019		As of April 30, 2020
Warrants to be issued		—		—
Call Option		—		—
Pantheon		—		473,949
MediSource		—		409,763
Total Balance of Contingent Consideration		—		883,712

Components in change in fair value of purchase consideration

The components in the change in fair value of the purchase consideration for the nine months ending April 30, 2020 and 2019 is as follows:

	Nine months ending April 30, 2019			Nine months ending April 30, 2020
Warrants to be issued		15,930,072			—
Call Option		(782,481	)		—
Pantheon		—			64,159
MediSource		—			55,471
Change in fair value of purchase consideration		15,147,591			119,630

Supplemental Pro Forma

Unaudited pro forma results of operations for the three and nine months ended April 30, 2020 and 2019 as though the Company acquired MediSource and Pantheon on the first day of each fiscal year are set forth below.

	Three Months Ended						Nine Months Ended
	April 30,						April 30,
	2020			2019			2020			2019
Revenues	$	498,676		$	1,515,036		$	2,077,764		$	7,624,831
Cost of revenues		116,292			1,366,268			415,569			4,570,820
Gross profit		382,384			148,767			1,662,195			3,054,012
Operating expenses		3,956,738			9,387,355			14,343,559			19,607,676
Operating loss		(3,574,354	)		9,238,587			(12,681,364	)		(16,553,664	)
Other income (expense)		(2,186,463	)		(1,853,364	)		(9,672,030	)		11,028,865
Net loss	$	(5,760,817	)	$	7,385,223		$	(22,353,394	)	$	(5,524,800	)
Comprehensive net loss	$	(5,609,420	)	$	(9,944,144	)	$	(21,666,893	)	$	(4,546,148	)

Medisource

Summary of allocation of preliminary purchase price

The following table summarizes the allocation of the preliminary purchase price as of the MediSource acquisition:

	Preliminary Allocation as of August 1, 2019
Cash and cash equivalents	$	13,895
Other current assets		11,864
Property and equipment, net		8,992
Accounts payable and accrued liabilities		(31,439	)
Net Tangible Assets	$	3,312
Tradename / Trademarks		47,600
Business Contracts		346,800
Non-Competes		124,600
Total Fair Value of Assets Acquired		522,312
Consideration:
Fair value of common stock		479,980
Contingent consideration		409,790
Consideration included in consulting agreement		104,168
Total Purchase Price		993,938
Goodwill	$	471,626

Pantheon [Member]

Summary of allocation of preliminary purchase price

The following table summarizes the allocation of the preliminary purchase price as of the Pantheon acquisition:

	Preliminary Allocation as of August 1, 2019
Cash and cash equivalents	$	35,410
Accounts receivable		133,269
Prepaid expenses		3,336
Inventory		266,071
Medical Equipment, net		67,299
Accounts payable		(53,242	)
Accrued liabilities		(15,573	)
Net Tangible Assets	$	436,570
Tradename / Trademarks		55,400
IP/Technology		41,500
Non-compete agreement		232,100
Customer Base		274,600
Total assets acquired	$	1,040,170
Consideration:
Fair value of common stock		671,972
Contingent consideration		354,292
Consideration included in consulting agreement		145,833
Goodwill	$	131,927