Summary of Significant Accounting Policies (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
Accounting Policies [Abstract] |
|
Summary of Activity of Level 3 Liabilities |
The
following is a summary of activity of Level 3 liabilities for the year ended December 31, 2022:
Summary of Activity of Level 3 Liabilities
| |
| | |
Balance - December 31, 2021 | |
$ | - | |
Additions | |
| 2,686,047 | |
Settlements | |
| (706,342 | ) |
Change in fair value | |
| 340,842 | |
Balance - December 31, 2022 | |
$ | 2,320,547 | |
|
Schedule of Allowance for Doubtful Accounts |
The
allowance for doubtful accounts reflects estimates that the Company periodically reviews and revises based on new information, to which
revisions may be material. The Company’s allowance for doubtful accounts consists of the following:
Schedule
of Allowance for Doubtful Accounts
Allowance
for Doubtful Accounts | |
Balance
at Beginning of Year | | |
Provision
for Doubtful Accounts | | |
Write-offs | | |
Balance
at End
of Year | |
December 31, 2022 | |
| 0 | | |
| 0 | | |
| 0 | | |
| 0 | |
December 31, 2021 | |
| 68,911 | | |
| 108,360 | | |
| (177,271 | ) | |
| 0 | |
|
Schedule of Estimated Useful Lives |
Property
and equipment are recorded at cost and depreciated using the straight-line basis over their estimated useful lives, which are typically
as follows:
Schedule
of Estimated Useful Lives
Asset Class | |
Estimated Useful
Life (in years) | |
Buildings | |
| 39 | |
Leasehold improvements | |
| 15-17 | * |
Equipment | |
| 7 | |
Computer equipment and software | |
| 5 | |
Furniture and fixtures | |
| 7 | |
|
Schedule of Expected Future Amortization Expense for Intangible Assets |
Acquired
intangible assets subject to amortization are as follows:
Schedule
of Intangible Assets to Amortization
| |
| | | |
| | | |
| | | |
|
| |
December 31, 2022 |
| |
Gross
Carrying Amount | | |
Accumulated
Amortization | | |
Net
Carrying Amount | | |
Weighted-Average
Remaining Useful Life (Years) |
Developed
technology | |
$ | 3,680,000 | | |
$ | 0 | | |
$ | 3,680,000 | | |
5 |
Expected
future amortization expense for intangible assets as of December 31, 2022 is as follows:
Schedule
of Expected Future Amortization Expense for Intangible Assets
| |
| | |
Fiscal
Years | |
| |
2023 | |
$ | 736,000 | |
2024 | |
| 736,000 | |
2025 | |
| 736,000 | |
2026 | |
| 736,000 | |
2027 | |
| 736,000 | |
Thereafter | |
| - | |
Total | |
$ | 3,680,000 | |
| |
| | | |
| | | |
| | | |
|
| |
December 31, 2021 |
| |
Gross
Carrying Amount | | |
Accumulated
Amortization | | |
Net
Carrying Amount | | |
Weighted-Average
Remaining Useful Life (Years) |
Developed
technology | |
$ | 1,760,000 | | |
$ | - | | |
$ | 1,760,000 | | |
6 |
|
Schedule of Expected Future Amortization Expense for Intangible Assets |
Expected
future amortization expense for intangible assets as of December 31, 2022 is as follows:
Schedule
of Expected Future Amortization Expense for Intangible Assets
| |
| | |
Fiscal
Years | |
| |
2023 | |
$ | 736,000 | |
2024 | |
| 736,000 | |
2025 | |
| 736,000 | |
2026 | |
| 736,000 | |
2027 | |
| 736,000 | |
Thereafter | |
| - | |
Total | |
$ | 3,680,000 | |
|
Schedule of Revenue from Contract with Customers |
Below is a table that shows the breakdown by percentage
of revenues related to contracts with residents versus resident fees for support or ancillary services.
Schedule
of Revenue from Contract with Customers
| |
For
the years ended December 31, | |
| |
2022 | | |
% | | |
2021 | | |
% | |
Revenue from contracts with customers: | |
| | | |
| | | |
| | | |
| | |
Resident rent
- over time | |
$ | 12,092,815 | | |
| 97 | % | |
$ | 12,104,591 | | |
| 94 | % |
Day care | |
| 260,317 | | |
| 2 | % | |
| 278,329 | | |
| 2 | % |
Commercial
property rental revenue – over time | |
| 135,419 | | |
| 1 | % | |
| 498,755 | | |
| 4 | % |
Total revenue from contracts
with customers | |
$ | 12,488,551 | | |
| | | |
$ | 12,881,675 | | |
| 100. | % |
|
Schedule of Net Assets Acquired and Liabilities Assumed |
The total purchase price paid in the Merger
has been allocated to the net assets acquired and liabilities assumed based on their fair values as of the completion of the Merger. The
following summarizes allocation of purchase price paid in the Merger:
Schedule
of Net Assets Acquired and Liabilities Assumed
Number of shares of the combined organization owned by the Company’s pre-merger stockholders | |
| 1,276,042 | |
Multiplied by the fair value per share of Superconductor common stock | |
$ | 2.65 | |
Fair value of consideration issued to effect the Merger | |
$ | 3,381,510 | |
Transaction costs | |
| - | |
Purchase price | |
$ | 3,381,510 | |
The
allocation of the purchase price is as follows.
|
|
|
|
|
Cash
acquired |
|
$ |
259,005 |
|
Net
assets acquired: |
|
|
|
|
Prepaid
expenses |
|
|
162,434 |
|
Inventory |
|
|
68,000 |
|
Investment
in AIU real estate (eliminated in consolidation) |
|
|
1,600,000 |
|
Accounts
payable and accrued expenses |
|
|
(298,353 |
) |
Accrued
compensation |
|
|
(1,000,000 |
) |
Debt
assumed |
|
|
(468,040 |
) |
Total
net assets |
|
|
64,041 |
|
Fair
value of excess of purchase price over net assets acquired – Preliminary Goodwill |
|
|
3,058,464 |
|
Purchase
price |
|
$ |
3,381,510 |
|
|