v3.26.3
BUSINESS COMBINATIONS (Tables)
 6 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
SCHEDULE OF PORTFOLIO COMPANY ACQUISITION

 

Portfolio Company  Aggregate Shares Issued   Estimated Fair Value 
CCCI   15,771,515(1)  $237,992,161 
Constellation   4,757,430    71,789,619 
Vanguard   455,805(1)   6,878,093 
MediGuide   2,580,000(2)   38,932,200 
AIR   2,645,346(3)   39,918,271 
Bond Street   500,000    7,545,000 

 

(1)This amount represents the estimated net shares issued to the sellers after deducting shares subject to the closing net indebtedness holdback.

 

(2)Includes 15,000 shares of AIAI Class A common stock issued to MediGuide as reimbursement for MediGuide’s transaction expenses.

 

(3)Includes an additional 145,346 shares of AIAI Class A common stock issued in exchange for AIR in addition to the shares specified in the merger agreement.
SCHEDULE OF ESTIMATED FAIR VALUE OF PURCHASE CONSIDERATION

The calculation of estimated fair value of purchase consideration for each Business Combination is as follows (in thousands):

 

Component  CCCI   Constellation   AIR   MediGuide   Vanguard   Total 
Fair value of AIAI Class A common stock issued in exchange for Portfolio Company equity  $237,992   $71,790   $39,918   $38,706   $6,878   $395,284 
Fair value of pre-combination service on outstanding equity awards (Constellation Options)   -    44,574    -    -    -    44,574 
Fair Value of AIAI Class A common stock issued as reimbursement of seller transaction costs   -    -    -    226         226 
Contingent consideration liability, payable in AIAI Class A common stock                       20,627    20,627 
Total purchase consideration  $237,992   $116,364   $39,918   $38,932   $27,505   $460,711 
SCHEDULE OF PRELIMINARY ALLOCATION OF ESTIMATED PURCHASE CONSIDERATION TO IDENTIFIABLE TANGIBLE AND INTANGIBLE ASSETS ACQUIRED AND LIABILITIES ASSUMED

The following table sets forth the preliminary allocation of the estimated fair value of purchase consideration for each Business Combination to the identifiable tangible and intangible assets acquired and liabilities assumed, based on their estimated values as of the Closing Date, measured in accordance with ASC 805, Business Combinations (in thousands):

 

   CCCI   Constellation   AIR   MediGuide   Vanguard   Total(1) 
ASSETS                              
Cash and cash equivalents  $12,204   $598   $4   $536   $44   $13,386 
Accounts receivable   21,664    130    -    1,226    6,277    29,297 
Contract assets   24,290    -    -    -    -    24,290 
Due from related parties - current   -    3,290    -    -    -    3,290 
Inventory   -    869    -    -    -    869 
Digital assets   -    1,530    -    -    -    1,530 
Restricted digital assets   -    568    -    -    -    568 
Prepaid expenses and other current assets   591    22    33    2,622    -    3,268 
Property and equipment   31,398    35    -    19    -    31,452 
Operating lease right-of-use assets   830    -    -    -    -    830 
Finance lease right-of-use assets   3,953    -    -    -    -    3,953 
Intangible assets   80,927    17,508    35,753    23,919    22,710    180,817 
Other non-current assets   -    4,556    -    4    -    4,560 
Total assets  $175,857   $29,106   $35,790   $28,326   $29,031   $298,110 
LIABILITIES                              
Accounts payable  $39,408   $658    -   $658   $4,371   $45,095 
Accrued expenses and other current liabilities   2,396    3,057    834    958    172    7,417 
Contract liabilities   8,254    -    -    -    -    8,254 
Short-term debt   -    -    -    -    2,481    2,481 
Due to related parties   -    -    2,594    -    283    2,877 
Current portion of long-term debt   7,708    -    -    1,791    -    9,499 
Operating lease obligation - current maturities   207    -    -    -    -    207 
Finance lease obligation - current maturities   2,466    -    -    -    -    2,466 
Deferred revenue   -    629    -    1,671    -    2,300 
Long-term debt   20,138    -    -    -    -    20,138 
Operating lease obligation   623    -    -    -    -    623 
Finance lease obligation   1,487    -    -    -    -    1,487 
Other long-term liabilities   23,467    -    6,643    3,457    4,791    38,358 
Total liabilities  $106,154   $4,344   $10,071   $8,535   $12,098   $141,202 
Identifiable net assets acquired   69,703    24,762    25,719    19,791    16,933    156,908 
Goodwill   168,289    91,602    14,199    19,141    10,572    303,803 
Purchase consideration  $237,992   $116,364   $39,918   $38,932   $27,505   $460,711 

 

(1)Excludes acquired assets and liabilities associated with Bond Street, which was acquired in a transaction under common control with AIAI, as discussed above.
SCHEDULE OF INITIAL CARRYING VALUES OF NET ASSETS RECOGNIZED

 

      
Assets acquired    
Cash and cash equivalents  $82 
Accounts receivable   375 
Inventory   354 
Prepaid expenses and other current assets   9 
Property and equipment, net   14 
Goodwill   1,403 
Total assets acquired  $2,237 
Less: liabilities assumed     
Accounts payable  $224 
Accrued expenses and other current liabilities   70 
Deferred revenue   29 
Long-term debt   48 
Net assets acquired  $1,866 
SCHEDULE OF PRO FORMA REVENUES AND NET INCOME

The following tables present pro forma revenues and net income as though the Acquisitions had occurred on January 1, 2025 (in thousands):

 

   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 
   Three Months Ended   Six Months Ended 
   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 
Pro forma revenues  $61,469   $70,063   $124,451   $137,621 
Pro forma net loss   (58,647)   (23,000)   (89,695)   (42,543)
SCHEDULE OF PRELIMINARY FAIR VALUES AND ESTIMATED USEFUL LIVES OF IDENTIFIABLE INTANGIBLE ASSETS ACQUIRED

The following table summarizes the preliminary fair values and estimated useful lives of identifiable intangible assets acquired (in thousands):

 

 SCHEDULE OF PRELIMINARY FAIR VALUES AND ESTIMATED USEFUL LIVES OF IDENTIFIABLE INTANGIBLE ASSETS ACQUIRED

   Useful Life (years)   CCCI   Constellation   AIR   MediGuide   Vanguard   Total 
Intangible assets:                                   
Customer relationships   14-25   $65,539   $1,297   $-   $17,875   $-   $84,711 
Customer backlog   1    2,135    -    -    -    -    2,135 
Trademarks and domain names   6 - 7    13,253    1,528    -    3,494    4,345    22,620 
Partner relationships   13    -    -    -    -    17,671    17,671 
Software   3 - 7    -    14,683    -    2,550    694    17,927 
Acquired technology   5    -    -    35,753    -    -    35,753 
Total acquired intangible assets       $80,927   $17,508   $35,753   $23,919   $22,710   $180,817