Wildman Acquisition

In connection with the asset acquisition, as discussed in Note M, the customer list was purchased using a Contingent Earn-Out Calculation. The purchase price is equal to fifteen percent (15%) of the gross profit earned from the sale of product to the customer list for years 1 and thirty percent (30%) for years 2 and 3. Payments are due on the first anniversary date of the purchase and then quarterly. At December 31, 2022 and 2021, the current portion of the earn-out liability amounted to $742,874 and $665,855, respectively. At December 31, 2022 and December 31, 2021, the long-term portion of the earn-out liability amounted to zero and $976,078, respectively.

G.A.P. Acquisition

In connection with the asset acquisition, as discussed in Note M, the customer list was purchased using a Contingent Earn-Out Calculation. The purchase price is equal to seventy percent (70%) of the gross profit over $1,500,000 earned from the sale of product to the customer list for years 1 and 2 in addition to a fixed payments of $180,000 and $300,000 for years 1 and 2, respectively. Payments are due on the first anniversary date of the purchase. At December 31, 2022 and 2021, the current portion of the earn-out liability amounted to $649,000 and zero, respectively. At December 31, 2022 and 2021, the long-term portion of the earn-out liability amounted to $986,000 and zero, respectively.

Trend Acquisition

In connection with the asset acquisition, as discussed in Note M, the customer list was purchased using a Contingent Earn-Out Calculation. The purchase price is equal to forty percent (40%) of the gross profit over $800,000 earned from the sale of product to the customer list for years 1 through 4 in addition to a fixed payments of $37,500 for years 1 and 2 and $25,000 for years 3 and 4, respectively. Payments are due on the first anniversary date of the purchase. At December 31, 2022 and 2021, the current portion of the earn-out liability amounted to $155,000 and zero, respectively. At December 31, 2022 and 2021, the long-term portion of the earn-out liability amounted to $1,214,844 and zero, respectively.

Premier Acquisition

In connection with the asset acquisition, as discussed in Note M, the customer list was purchased using a Contingent Earn-Out Calculation. The purchase price is equal to forty-five percent (45%) of the gross profit over $350,000 earned from the sale of product to the customer list for years 1 through 3 in addition to a fixed payments of $60,000 for year 1, $40,000 for year 2, and $30,000 for year 3. Payments are due on the first anniversary date of the purchase. At December 31, 2022 and 2021, the current portion of the earn-out liability amounted to $262,500 and zero, respectively. At December 31, 2022 and 2021, the long-term portion of the earn-out liability amounted to $645,100 and zero, respectively.