SHARE PURCHASE AND SUBSCRIPTION AGREEMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Reconciliation of changes in redeemable noncontrolling interest

The table below presents the reconciliation of changes in redeemable noncontrolling interest relating to MG SPV as of September 30, 2021 and 2020.


	September 30, 2021		September 30, 2020
Beginning balance	$	5,472,841	$	4,396,894


Net loss attributable to redeemable non-controlling interest	(200,218)		(120,031)
Change in ownership	—		71,171
Accretion of non-controlling interest to redemption value	1,176,683		833,354
Ending balance	$	6,449,306	$	5,181,388

The table below presents the reconciliation of changes in redeemable noncontrolling interest relating to Heartland SPV as of September 30, 2021 and 2020.


	September 30, 2021		September 30, 2020
Beginning balance	$	26,138,833	$	—

Initial adjustment of carrying amount of non-controlling interest	—		11,908,932
Net income attributable to redeemable non-controlling interest	7,183,268		35,449
Accretion of non-controlling interest to redemption value	—		12,802,442
Ending balance	$	33,322,101	$	24,746,823

Schedule of variable interest entities

The following table summarizes the carrying amounts of Heartland SPV’s assets and liabilities included in the Company’s consolidated balance sheets at September 30, 2021 and December 31, 2020:


	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	7,229,786	$	7,890,886
Accounts receivable, net	7,601,929		3,591,468

Inventory	927,810		629,667
Prepaid expense and other current assets	1,567,763		926,203
Total current assets	17,327,288		13,038,224

Fixed assets, net	7,290,467		6,549,139
Finance lease right-of-use assets	805,313		1,031,353
Operating lease right-of-use assets	237,217		299,758
Intangible assets, net	876,440		1,064,624
Other assets	106,643		108,643
Total assets	$	26,643,368	$	22,091,741

Accounts payable	$	2,290,245	$	1,753,160
Accrued expenses	630,442		307,340
Finance lease liability-current	692,274		346,029
Operating lease liability-current	181,644		251,037
Total current liabilities	3,794,605		2,657,566

Finance lease liability-long term	—		643,446
Operating lease liability-long term	55,573		48,721
Total liabilities	$	3,850,178	$	3,349,733

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details