Acquisitions

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

20) Acquisitions

Rivera Funerals, Cremations and Memorial Gardens

On December 21, 2021, the Company, through its wholly-owned subsidiary, Memorial Estates Inc., completed a business combination transaction with Rivera Funerals, Cremations and Memorial Gardens. The mortuaries and cemetery are located in New Mexico.

Under the terms of the transaction, as set forth in the Asset Purchase Agreement, dated December 21, 2021, Memorial Estates Inc. paid a net purchase price of $10,693,395 for the business and assets of Rivera Funerals, Cremations and Memorial Gardens, subject to holdback amounts held by Memorial Estates, Inc. in the total amount of $1,120,000. Pursuant to the Asset Purchase Agreement, Memorial Estates, Inc. used $70,000 of the holdback amount to pay trade accounts payable of Rivera Funerals, Cremations and Memorial Gardens to third parties that remained unpaid at the time of purchase. The remaining $1,050,000 holdback amount is to be released and paid by Memorial Estates Inc. in annual payments of up to $105,000 each, beginning in January 2023.

The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows:

Restricted assets (1)	$	618,006
Property and equipment (2)		6,255,836
Cemetery land and improvements		658,280
Goodwill		1,338,763
Other (3)		2,440,516
Total assets acquired		11,311,401
Cemetery perpetual care obligation		(618,006	)
Other liabilities - holdback		(1,120,000	)
Total liabilities assumed		(1,738,006	)
Fair value of net assets acquired/consideration paid	$	9,573,395

(1) Includes $39,000 of cash and $579,006 of fixed maturity securities, available for sale, at estimated fair value which is a Level 2 asset in the fair value hierarchy

(2) At estimated fair value which is a Level 3 asset in the fair value hierarchy

(3) Including $2,310,000 of intangible assets

Rivera Funerals, Cremations and Memorial Gardens revenues and net earnings since the date of acquisition for the year ended December 31, 2021 were $137,386 and $14,892, respectively.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2022 and 2021

20) Acquisitions (Continued)

Holbrook Mortuary

On December 28, 2021, the Company, through its wholly-owned subsidiary, Memorial Mortuary Inc., completed a business combination transaction with Holbrook Mortuary located in Salt Lake City, Utah.

Under the terms of the transaction, as set forth in the Asset Purchase Agreement, dated December 28, 2021, Memorial Mortuary Inc. paid a net purchase price of $3,051,747 for the business and assets of Holbrook Mortuary.

The estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition were as follows:

Property and equipment (1)	$	2,641,210
Goodwill		395,432
Other		15,105
Total assets acquired		3,051,747
Fair value of net assets acquired/consideration paid	$	3,051,747

(1) At estimated fair value which is a Level 3 asset in the fair value hierarchy

Holbrook Mortuary’s revenues and net loss since the date of acquisition for the year ended December 31, 2021 were nil and $(98,531), respectively.

SECURITY NATIONAL FINANCIAL CORPORATION

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years Ended December 31, 2022 and 2021