v3.25.1
Business Combination
 3 Months Ended
Mar. 31, 2025
Business Combination [Abstract]  
Business Combination
19. Business Combination

 

On February 2, 2025, the Company entered into the Merger Agreement with NAHD. Following the Merger, NAHD and its operating subsidiaries will be indirect, wholly owned subsidiaries of the Company. As merger consideration, the Company will issue four million (4,000,000) shares of Series A non-voting convertible preferred shares of the Company, par value $1.00 (the “Preferred Shares”), to NAHD’s shareholders, with each Preferred Share having the right to convert into fifteen (15) shares of common stock of the Company, provided, however, that any such conversion is subject to the approval by the Company’s common stockholders. The Merger Agreement contains conditions to the completion of the Merger, including the filing of the articles of incorporation and/or organization for the merger subsidiaries, and the adoption of board resolutions and/or sole member resolutions by the merger subsidiaries approving the Merger. On February 13, 2025, all of the closing conditions to the Merger Agreement have been satisfied or waived, the Preferred Shares have been issued to NAHD’s shareholders, and the transactions set forth in the Merger Agreement have been fully completed and closed.

 

The purchase consideration amounted to $34,569,600, which is the fair value of the Preferred Shares.

The following table summarizes the preliminary allocation of the purchase price to the assets acquired and liabilities assumed for the Merger:  

 

Cash and cash equivalents  $77,013 
Accounts receivable   49,418 
Inventory   469,961 
Oil and gas, on the basis of full cost accounting   
 
 
Property, plant and equipment   2,610,321 
Reserves   1,750,000 
Goodwill   38,160,202 
Intangible assets   812,938 
Project development cost and other assets   2,244 
Accounts payable and accrued expenses   (1,601,573)
Due to related parties   (3,442,828)
Contract liabilities   (552,500)
Long-term debt   (3,765,596)
Total consideration  $(34,569,600)

  

As of March 31, 2025, the Company has not completed its measurement period with respect to the acquisition. The amounts above represent provisional amounts recorded at this time and are subject to adjustments once the measurement period has ended.  

 

Below is a proforma condensed consolidated statement of operations for the three months ended March 31, 2025 and 2024, as if the Company purchased NAHD as of January 1, 2024.

 

   For the
Three  Months
Ended
March 31,
2025		   For the
Three  Months
Ended
March 31,
2024		 
   (Unaudited)   (Unaudited) 
Revenue:        
Construction services  $496,079   $968,115 
Subscription revenue   119,343    22,833 
Total   615,422    990,948 
           
Cost of revenue:          
Construction services   854,466    644,983 
Other   45,631    8,035 
Total   900,097    653,018 
Gross profit (loss)   (284,675)   337,930 
           
Operating expenses:          
Payroll and related expenses   641,599    1,251,982 
General and administrative expenses   1,001,988    591,409 
Marketing and business development expense   6,916    123,575 
Total   1,650,503    1,966,966 
           
Operating loss   (1,935,178)   (1,629,036)
           
Other expense:          
Interest expense   (614,412)   (919,380)
Change in fair value of equity-based investments   (311,560)   (3,112,803)
Loss on disposition of equity-based investment   
-
    (180,600)
Interest income   
-
    9,570 
Other income   
-
    48,617 
    (925,972)   (4,154,596)
           
 Loss from continuing operations   (2,861,149)   (5,783,632)
           
Income from discontinued operations   
-
    2,684,678 
           
Net loss  $(2,861,149)  $(3,098,954)