May 5, 2020, the Company acquired 100% of the equity interests in Roboro, its exclusive manufacturer in South Africa,
in order to reduce its dependence on third parties for production. As a result of this acquisition, the Company now directly
operates its sole manufacturer in South Africa.
acquisition date fair value of the consideration was $557,566, including $500,000 paid in cash. In addition, Roboro’s
sellers purchased 1,388,889 shares of the Company’s common stock for $500,000 at a contractual price of $0.36 per
share. These shares, which were issued on May 27, 2020, are restricted and subject to a 15-month vesting schedule. The
fair market value of the common stock of $555,556 was based on the stock’s closing price of $0.40 on May 5, 2020.
The difference between the fair market value plus $2,010 of transaction costs and the amount paid, was treated as an additional
consideration for the acquisition.
estimated fair value of assets acquired and liabilities assumed on May 5, 2020 is as follows: