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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:

 

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:

 

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:

 

                   
   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:

 

      
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:

 

      
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.

 

 

   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:

 

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