(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer | o | Accelerated filer | o | ||||||||
x | Smaller reporting company | ||||||||||
Emerging growth company |
Page | ||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventory, net | |||||||||||
Contract assets | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Intangible asset, net | |||||||||||
Right of use assets, net | |||||||||||
Goodwill | |||||||||||
Other non-current assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Contract liabilities | |||||||||||
Line of credit | |||||||||||
Notes payable, current portion | |||||||||||
Financing lease obligation, current portion | |||||||||||
Operating lease obligation, current portion | |||||||||||
Total current liabilities | |||||||||||
Notes payable, net of current portion | |||||||||||
Line of credit, net of current portion | |||||||||||
Financing lease obligations, net of current portion | |||||||||||
Operating lease obligations, net of current portion | |||||||||||
Deferred tax liability | |||||||||||
TOTAL LIABILITIES | |||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Preferred stock, $ | — | — | |||||||||
Series B preferred stock; $ | |||||||||||
Series C preferred stock; $ | |||||||||||
Series D preferred stock; $ | |||||||||||
Class A Common stock, $ | |||||||||||
Class B Common stock, $ | |||||||||||
Class C Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues, net | $ | $ | $ | $ | |||||||||||||||||||
Costs of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Other income (expenses) | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Gain on extinguishment of debt | |||||||||||||||||||||||
Gain on forgiveness of debt | |||||||||||||||||||||||
Gain on sale of property | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total other income (expenses) | ( | ( | |||||||||||||||||||||
Income (loss) before income tax | ( | ( | ( | ||||||||||||||||||||
Income tax | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Basic income (loss) per share | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Diluted income (loss) per share | $ | $ | ( | $ | ( | $ | ( |
Series B Preferred Stock | Series C Preferred Stock | Series D Preferred Stock | Class A Common Stock | Class B Common Stock | Class C Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares of common stock for compensation | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of series D preferred stock to Class A | — | — | — | — | ( | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of series C preferred stock to Class A | — | — | ( | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares of common stock for compensation | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued for cash | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | $ | $ | $ | — | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares of common stock for cash, net of offering costs | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares of series D preferred stock for acquisition | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of class C common stock | — | — | — | — | — | — | — | — | — | — | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial conversion feature on convertible notes | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares of common stock for acquisitions | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversions of Class C to Class A | — | — | — | — | — | — | — | — | ( | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B to Class A | — | — | — | — | — | — | ( | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Gain on extinguishment of debt | ( | ||||||||||
Gain on forgiveness of debt | ( | ||||||||||
Gain on sale of property | ( | ||||||||||
Employee stock compensation | |||||||||||
Amortization of debt discounts | |||||||||||
Non-cash lease expense | |||||||||||
Write off of inventory | |||||||||||
Bad debt expense | |||||||||||
Changes in current assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventory | ( | ||||||||||
Contract assets | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Accrued expenses | |||||||||||
Contract liabilities | ( | ( | |||||||||
Operating lease liability | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sale of property | |||||||||||
Cash paid for acquisition | ( | ||||||||||
Cash assumed in acquisition | |||||||||||
Net cash provided by (used) in investing activities | ( | ||||||||||
FINANCING ACTIVITIES: | |||||||||||
Proceeds from the sale of common stock, net of offering costs | |||||||||||
Proceeds from issuances of notes payable, non-related party | |||||||||||
Proceeds from issuances of convertible notes payable | |||||||||||
Proceeds from line of credit | |||||||||||
Repayment of mortgage on property | ( | ||||||||||
Repurchase of common stock | ( | ||||||||||
Repayments of notes payable, related party | ( | ||||||||||
Repayments of notes payable, non-related parties | ( | ( | |||||||||
Repayments of convertible notes payable | ( | ||||||||||
Repayment of line of credit | ( | ( | |||||||||
Cash paid on financing lease obligations | ( | ( | |||||||||
Net cash provided by (used) in financing activities | ( | ||||||||||
NET INCREASE IN CASH | |||||||||||
CASH, BEGINNING BALANCE | |||||||||||
CASH, ENDING BALANCE | $ | $ | |||||||||
CASH PAID FOR: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES: | |||||||||||
Common stock issued for convertible note payable and accrued interest | $ | $ | |||||||||
Common stock issued for acquisition | $ | $ | |||||||||
ROU asset and operating lease obligation recognized under Topic 842 | $ | $ | |||||||||
Remeasurement of finance lease liability | $ | $ | |||||||||
Equipment purchased on note payable | $ | $ | |||||||||
Conversion of series D preferred stock for common stock | $ | $ | |||||||||
Issuance of shares of series D preferred stock for acquisition | $ | $ | |||||||||
Beneficial conversion feature on convertible notes | $ | $ |
For the Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
Net Income | Shares | Per Share Amount | Net loss | Shares | Per Share Amount | ||||||||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||
Effect of Dilutive Securities | |||||||||||||||||||||||||||||||||||
Stock options and warrants | — | — | — | — | |||||||||||||||||||||||||||||||
Dilute EPS | |||||||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2022 | For the Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||
Net loss | Shares | Per Share Amount | Net loss | Shares | Per Share Amount | ||||||||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Effect of Dilutive Securities | |||||||||||||||||||||||||||||||||||
Stock options and warrants | — | — | — | — | |||||||||||||||||||||||||||||||
Dilute EPS | |||||||||||||||||||||||||||||||||||
$ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
Construction Services | Manufacturing | Defense | Technologies | Aerospace | Total | ||||||||||||||||||||||||||||||
Sale of goods | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Sale of services | |||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
Construction Services | Manufacturing | Defense | Technologies | Aerospace | Total | ||||||||||||||||||||||||||||||
Sale of goods | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Sale of services | |||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||
Construction Services | Manufacturing | Defense | Total | ||||||||||||||||||||
Sale of goods | $ | $ | $ | $ | |||||||||||||||||||
Sale of services | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Six Months Ended June 30, 2021 | |||||||||||||||||||||||
Construction Services | Manufacturing | Defense | Total | ||||||||||||||||||||
Sale of goods | $ | $ | $ | $ | |||||||||||||||||||
Sale of services | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
Twelve Months Ending June 30, | Finance Leases | Operating Leases | |||||||||
2023 | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Thereafter | |||||||||||
Total payments | |||||||||||
Less: imputed interest | ( | ( | |||||||||
Total obligation | |||||||||||
Less: current portion | ( | ( | |||||||||
Non-current financing leases obligations | $ | $ |
Classification on Balance Sheet | June 30, 2022 | December 31, 2021 | ||||||||||||
Assets | ||||||||||||||
Operating lease assets | Operating lease right of use assets | $ | $ | |||||||||||
Total lease assets | $ | $ | ||||||||||||
Liabilities | ||||||||||||||
Current liabilities | ||||||||||||||
Operating lease liability | Current operating lease liability | $ | $ | |||||||||||
Noncurrent liabilities | ||||||||||||||
Operating lease liability | Long-term operating lease liability | |||||||||||||
Total lease liability | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Lines of credit, current portion | $ | $ | |||||||||
Equipment loans, current portion | |||||||||||
Term notes, current portion | |||||||||||
Total current | |||||||||||
Lines of credit, net of current portion | |||||||||||
Long-term portion of equipment loans and term notes | |||||||||||
Total notes payable and line of Credit | $ | $ |
Twelve Months Ending June 30, | |||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 31, 2021 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Exercised | |||||||||||||||||||||||
Outstanding at June 30, 2022 | $ | $ | |||||||||||||||||||||
Vested and expected to vest at June 30, 2022 | $ | $ | |||||||||||||||||||||
Exercisable at June 30, 2022 | $ | $ |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||
Exercise Price | Number of Shares | Weighted Average Remaining Life (Years) | Weighted Average Exercise Price | Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||||||||||
$ | $ | $ | ||||||||||||||||||||||||||||||
Stock price | $ | ||||
Risk-free interest rate | |||||
Expected life of the options | |||||
Expected volatility | |||||
Expected dividend yield |
Warrants | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 31, 2021 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Forfeited | |||||||||||||||||||||||
Exercised | |||||||||||||||||||||||
Outstanding at June 30, 2022 | $ | $ | |||||||||||||||||||||
Vested and expected to vest at June 30, 2022 | $ | $ | |||||||||||||||||||||
Exercisable at June 30, 2022 | $ | $ |
Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||||||||||||
Exercise Price | Number of Shares | Weighted Average Remaining Life (Years) | Weighted Average Exercise Price | Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||||||||||
$ | $ | $ | ||||||||||||||||||||||||||||||
Stock price | $ | ||||
Risk-free interest rate | |||||
Expected life of the options | |||||
Expected volatility | |||||
Expected dividend yield |
Purchase Allocation | |||||
Accounts receivable | $ | ||||
Other current assets | |||||
Inventory | |||||
Property and equipment | |||||
Customer list | |||||
Trademark | |||||
Non-compete agreement | |||||
Goodwill | |||||
ROU asset | |||||
Accounts payable | ( | ||||
Accrued expenses and other current liabilities | ( | ||||
Customer deposits | ( | ||||
Operating lease liability | ( | ||||
Line of credit | ( | ||||
$ |
Cash | $ | ||||
Class A Common Stock ( | |||||
Warrants ( | |||||
Seller notes | |||||
$ |
Pro Forma Combined Financials (unaudited) | |||||||||||||||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | ||||||||||||||||
Sales | $ | $ | |||||||||||||||
Cost of goods sold | |||||||||||||||||
Gross profit | |||||||||||||||||
Operating expenses | |||||||||||||||||
Loss from operations | ( | ( | |||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||
Net loss per share | ( | ( |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Construction Services | $ | $ | $ | $ | |||||||||||||||||||
Manufacturing | |||||||||||||||||||||||
Defense | |||||||||||||||||||||||
Technologies | |||||||||||||||||||||||
Aerospace | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Construction Services | $ | $ | $ | $ | |||||||||||||||||||
Manufacturing | |||||||||||||||||||||||
Defense | |||||||||||||||||||||||
Technologies | |||||||||||||||||||||||
Aerospace | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||
Construction Services | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Manufacturing | ( | ( | |||||||||||||||||||||
Defense | |||||||||||||||||||||||
Technologies | |||||||||||||||||||||||
Aerospace | ( | ( | ( | ( | |||||||||||||||||||
Unallocated | ( | ( | ( | ( | |||||||||||||||||||
$ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Construction Services | $ | $ | $ | $ | |||||||||||||||||||
Manufacturing | |||||||||||||||||||||||
Defense | |||||||||||||||||||||||
Technologies | |||||||||||||||||||||||
Aerospace | |||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Construction Services | $ | $ | $ | $ | |||||||||||||||||||
Manufacturing | |||||||||||||||||||||||
Defense | |||||||||||||||||||||||
Technologies | |||||||||||||||||||||||
Aerospace | |||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||
Construction Services | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Manufacturing | |||||||||||||||||||||||
Defense | |||||||||||||||||||||||
Technologies | |||||||||||||||||||||||
Aerospace | ( | ( | ( | ( | |||||||||||||||||||
Unallocated | ( | ( | ( | ( | |||||||||||||||||||
$ | $ | ( | $ | ( | $ | ( |
As of June 30, 2022 | As of December 31, 2021 | ||||||||||
Total Assets | |||||||||||
Construction Services | $ | $ | |||||||||
Manufacturing | |||||||||||
Defense | |||||||||||
Technologies | |||||||||||
Aerospace | |||||||||||
Unallocated | |||||||||||
$ | $ | ||||||||||
Goodwill | |||||||||||
Construction Services | $ | $ | |||||||||
Manufacturing | |||||||||||
Defense | |||||||||||
Technologies | |||||||||||
Aerospace | |||||||||||
$ | $ | ||||||||||
Accounts receivable, net | |||||||||||
Construction Services | $ | $ | |||||||||
Manufacturing | |||||||||||
Defense | |||||||||||
Technologies | |||||||||||
Aerospace | |||||||||||
$ | $ |
2023 | $ | |||||||
2024 | ||||||||
Total | $ |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | $ Change | |||||||||||||||
Revenue | $ | 25,271,126 | $ | 14,130,730 | $ | 11,140,396 | |||||||||||
Cost of revenue | 18,661,407 | 10,166,670 | 8,494,737 | ||||||||||||||
Gross Profit | 6,609,719 | 3,964,060 | 2,645,659 | ||||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative expenses | 9,082,997 | 6,353,075 | 2,729,922 | ||||||||||||||
Research and development | 394,835 | 515,202 | (120,367) | ||||||||||||||
Total operating expenses | 9,477,832 | 6,868,277 | 2,609,555 | ||||||||||||||
Loss from operations | (2,868,113) | (2,904,217) | 36,104 | ||||||||||||||
Other income (expenses) | |||||||||||||||||
Interest expense | (962,474) | (1,216,587) | 254,113 | ||||||||||||||
Gain on extinguishment of debt | — | 803,079 | (803,079) | ||||||||||||||
Gain on forgiveness of debt | — | 159,742 | (159,742) | ||||||||||||||
Gain on sale of property | 5,597,450 | — | 5,597,450 | ||||||||||||||
Other income | 258,660 | 30,706 | 227,954 | ||||||||||||||
Total other income (expenses) | 4,893,636 | (223,060) | 5,116,696 | ||||||||||||||
Income (loss) before income tax | 2,025,523 | (3,127,277) | 5,152,800 | ||||||||||||||
Income tax expense | — | — | — | ||||||||||||||
Net income (loss) | $ | 2,025,523 | $ | (3,127,277) | $ | 5,152,800 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | $ Change | |||||||||||||||
Revenue | $ | 50,863,280 | $ | 22,540,269 | $ | 28,323,011 | |||||||||||
Cost of revenue | 38,616,104 | 17,821,590 | 20,794,514 | ||||||||||||||
Gross Profit | 12,247,176 | 4,718,679 | 7,528,497 | ||||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative expenses | 18,128,235 | 12,179,763 | 5,948,472 | ||||||||||||||
Research and development | 586,765 | 515,202 | 71,563 | ||||||||||||||
Total operating expenses | 18,715,000 | 12,694,965 | 6,020,035 | ||||||||||||||
Loss from operations | (6,467,824) | (7,976,286) | 1,508,462 | ||||||||||||||
Other income (expenses) | |||||||||||||||||
Interest expense | (1,571,435) | (2,688,310) | 1,116,875 | ||||||||||||||
Gain on extinguishment of debt | — | 803,079 | (803,079) | ||||||||||||||
Gain on forgiveness of debt | — | 589,282 | (589,282) | ||||||||||||||
Gain on sale of property | 5,597,450 | — | 5,597,450 | ||||||||||||||
Other income | 291,379 | 15,490 | 275,889 | ||||||||||||||
Total other expenses | 4,317,394 | (1,280,459) | 5,597,853 | ||||||||||||||
Loss before income tax | (2,150,430) | (9,256,745) | 7,106,315 | ||||||||||||||
Income tax expense | — | — | — | ||||||||||||||
Net loss | $ | (2,150,430) | $ | (9,256,745) | $ | 7,106,315 |
Exhibit Number | Description | |||||||
2.1 | Impossible Aerospace Merger Agreement dated November 13, 2020 (incorporated by reference to Exhibit 3.4 to Alpine 4’s Current Report on Form 8-K filed November 17, 2020). | |||||||
2.2 | Vayu (US) Merger Agreement dated December 29, 2020 (incorporated by reference to Exhibit 3.4 to Alpine 4’s Current Report on Form 8-K filed January 4, 2021). | |||||||
2.3 | ||||||||
3.1 | Series C Preferred Stock Certificate of Designation (incorporated by reference to Exhibit 3.4 to Alpine 4’s Current Report on Form 8-K filed November 17, 2020). | |||||||
3.2 | Series D Preferred Stock Certificate of Designation (incorporated by reference to Exhibit 3.4 to Alpine 4’s Current Report on Form 8-K filed January 4, 2021). | |||||||
3.3 | Certificate of Amendment to Certificate of Incorporation (Name Change) filed February 5, 2021 (incorporated by reference to Exhibit 3.4 to Alpine 4’s Current Report on Form 8-K filed February 8, 2021). | |||||||
10.1 | Impossible Aerospace Consultant Agreement dated November 13, 2020 (incorporated by reference to Exhibit 10.1 to Alpine 4’s Current Report on Form 8-K filed November 17, 2020). | |||||||
10.2 | RSU Agreement dated November 13, 2020 (incorporated by reference to Exhibit 10.2 to Alpine 4’s Current Report on Form 8-K filed November 17, 2020). | |||||||
10.3 | Vayu (US) Employment Agreement dated December 29, 2020 (incorporated by reference to Exhibit 10.1 to Alpine 4’s Current Report on Form 8-K filed January 4, 2021). | |||||||
10.4 | RSU Agreement dated December 29, 2020 (incorporated by reference to Exhibit 10.2 to Alpine 4’s Current Report on Form 8-K filed January 4, 2021). | |||||||
10.5 | Form of Securities Purchase Agreement (AGP Transaction) (incorporated by reference to Exhibit 10.1 to Alpine 4’s Current Report on Form 8-K filed February 12, 2021). | |||||||
10.6 | Form of Placement Agent Agreement (incorporated by reference to Exhibit 10.2 to Alpine 4’s Current Report on Form 8-K filed February 12, 2021). | |||||||
10.7 | Stock Purchase Agreement by and among A4 Defense Services, Inc., Thermal Dynamics International, Inc., Page Management Co., Inc., and Stephen L. Page (previously filed as Exhibit 10.1 to the Company’s Current Report filed on May 4, 2021, and incorporated herein by reference). | |||||||
10.8 | Membership Interest Purchase Agreement by and among A4 Manufacturing, Inc., Alpine 4 Holdings, Inc., Alternative Laboratories, LLC, KAI Enterprises, LLC, and Kevin Thomas (previously filed as Exhibit 10.1 to the Company’s Current Report filed on May 10, 2021, and incorporated herein by reference). | |||||||
10.9 | Commercial Lease Agreement by and between 4740 Cleveland, LLC, and Alternative Laboratories, LLC (previously filed as Exhibit 10.4 to the Company’s Current Report filed on May 10, 2021, and incorporated herein by reference). | |||||||
10.10 | Membership Interest Purchase Agreement by and among A4 Manufacturing, Inc., Alpine 4 Holdings, Inc., 4740 Cleveland, LLC, and Kevin Thomas (previously filed as Exhibit 10.5 to the Company’s Current Report filed on May 10, 2021, and incorporated herein by reference). | |||||||
10.11 | Identified Technologies Corporation Stock Purchase Agreement, dated October 20, 2021 (previously filed as Exhibit 10 to the Company’s Current Report filed on October 25, 2021, and incorporated herein by reference). | |||||||
10.12 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 INS | XBRL Instance Document* | |||||||
101 SCH | XBRL Schema Document* | |||||||
101 CAL | XBRL Calculation Linkbase Document* | |||||||
101 DEF | XBRL Definition Linkbase Document* |
101 LAB | XBRL Labels Linkbase Document* | |||||||
101 PRE | XBRL Presentation Linkbase Document* |
Alpine 4 Holdings, Inc. | ||||||||
Dated: August 11, 2022 | ||||||||
By: | /s/ Kent B. Wilson | |||||||
Kent B. Wilson | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
By: | /s/ Larry Zic | |||||||
Larry Zic | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Dated: August 11, 2022 | ||||||||
By: | /s/ Kent B. Wilson | |||||||
Kent B. Wilson | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Dated: August 11, 2022 | ||||||||
By: | /s/ Larry Zic | |||||||
Larry Zic | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Dated: August 11, 2022 | By: | /s/ Kent B. Wilson | ||||||
Kent B. Wilson | ||||||||
Chief Executive Officer |
Dated: August 11, 2022 | By: | /s/ Larry Zic | ||||||
Larry Zic | ||||||||
Chief Financial Officer |
Consolidated Statements of Operations - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Statement [Abstract] | ||||
Revenues, net | $ 25,271,126 | $ 14,130,730 | $ 50,863,280 | $ 22,540,269 |
Costs of revenue | 18,661,407 | 10,166,670 | 38,616,104 | 17,821,590 |
Gross profit | 6,609,719 | 3,964,060 | 12,247,176 | 4,718,679 |
Operating expenses: | ||||
General and administrative expenses | 9,082,997 | 6,353,075 | 18,128,235 | 12,179,763 |
Research and development | 394,835 | 515,202 | 586,765 | 515,202 |
Total operating expenses | 9,477,832 | 6,868,277 | 18,715,000 | 12,694,965 |
Loss from operations | (2,868,113) | (2,904,217) | (6,467,824) | (7,976,286) |
Other income (expenses) | ||||
Interest expense | (962,474) | (1,216,587) | (1,571,435) | (2,688,310) |
Gain on extinguishment of debt | 0 | 803,079 | 0 | 803,079 |
Gain on forgiveness of debt | 0 | 159,742 | 0 | 589,282 |
Gain on sale of property | 5,597,450 | 0 | 5,597,450 | 0 |
Other income | 258,660 | 30,706 | 291,379 | 15,490 |
Total other income (expenses) | 4,893,636 | (223,060) | 4,317,394 | (1,280,459) |
Income (loss) before income tax | 2,025,523 | (3,127,277) | (2,150,430) | (9,256,745) |
Income tax | 0 | 0 | 0 | 0 |
Net income (loss) | $ 2,025,523 | $ (3,127,277) | $ (2,150,430) | $ (9,256,745) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 183,198,579 | 161,712,406 | 183,124,480 | 158,184,050 |
Diluted (in shares) | 184,190,932 | 161,712,406 | 183,124,480 | 158,184,050 |
Basic income (loss) per share (in dollars per share) | $ 0.01 | $ (0.02) | $ (0.01) | $ (0.06) |
Diluted income (loss) per share (in dollars per share) | $ 0.01 | $ (0.02) | $ (0.01) | $ (0.06) |
Consolidated Statements Changes in Stockholders' Equity - USD ($) |
Total |
Convertible Notes Payable |
Conversion of series D preferred stock to Class A |
Conversion of series C preferred stock to Class A |
Conversions of Class C to Class A |
Conversion of Class B to Class A |
Additional Paid-in Capital |
Additional Paid-in Capital
Convertible Notes Payable
|
Accumulated Deficit |
Series B Preferred Stock
Preferred Stock
|
Series C Preferred Stock
Preferred Stock
|
Series C Preferred Stock
Preferred Stock
Conversion of series C preferred stock to Class A
|
Series D Preferred Stock
Preferred Stock
|
Series D Preferred Stock
Preferred Stock
Conversion of series D preferred stock to Class A
|
Class A Common Stock
Common Stock
|
Class A Common Stock
Common Stock
Convertible Notes Payable
|
Class A Common Stock
Common Stock
Conversion of series D preferred stock to Class A
|
Class A Common Stock
Common Stock
Conversion of series C preferred stock to Class A
|
Class A Common Stock
Common Stock
Conversions of Class C to Class A
|
Class A Common Stock
Common Stock
Conversion of Class B to Class A
|
Class B Common Stock
Common Stock
|
Class B Common Stock
Common Stock
Conversion of Class B to Class A
|
Class C Common Stock
Common Stock
|
Class C Common Stock
Common Stock
Conversions of Class C to Class A
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2020 | 5 | 1,714,286 | 0 | 126,363,158 | 9,023,088 | 14,162,267 | ||||||||||||||||||
Beginning balance at Dec. 31, 2020 | $ (8,788,292) | $ 30,991,978 | $ (39,795,401) | $ 5 | $ 171 | $ 0 | $ 12,636 | $ 902 | $ 1,417 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Issuance of shares of common stock for cash, net of offering costs (in shares) | 9,857,397 | |||||||||||||||||||||||
Issuance of shares of common stock for cash, net of offering costs | $ 54,302,982 | $ 54,301,997 | $ 985 | |||||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest (in shares) | 702,877 | |||||||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest | 109,830 | 109,760 | $ 70 | |||||||||||||||||||||
Issuance of stock for acquisitions (in shares) | 1,428,570 | |||||||||||||||||||||||
Issuance of stock for acquisitions | 6,653,309 | 6,653,166 | $ 143 | |||||||||||||||||||||
Repurchase of class C common stock (in shares) | (45,000) | |||||||||||||||||||||||
Repurchase of class C common stock | (185,850) | (185,845) | $ (5) | |||||||||||||||||||||
Share-based compensation expense | 19,341 | 19,341 | ||||||||||||||||||||||
Beneficial conversion feature on convertible notes | 92,428 | 92,428 | ||||||||||||||||||||||
Net (loss) income | (6,129,468) | (6,129,468) | ||||||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2021 | 5 | 1,714,286 | 1,428,570 | 136,923,432 | 9,023,088 | 14,117,267 | ||||||||||||||||||
Ending balance at Mar. 31, 2021 | 46,074,280 | 91,982,825 | (45,924,869) | $ 5 | $ 171 | $ 143 | $ 13,691 | $ 902 | $ 1,412 | |||||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 5 | 1,714,286 | 0 | 126,363,158 | 9,023,088 | 14,162,267 | ||||||||||||||||||
Beginning balance at Dec. 31, 2020 | (8,788,292) | 30,991,978 | (39,795,401) | $ 5 | $ 171 | $ 0 | $ 12,636 | $ 902 | $ 1,417 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net (loss) income | (9,256,745) | |||||||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 5 | 1,714,286 | 1,428,570 | 144,828,817 | 8,673,088 | 12,500,200 | ||||||||||||||||||
Ending balance at Jun. 30, 2021 | 46,909,630 | 95,944,854 | (49,052,146) | $ 5 | $ 171 | $ 143 | $ 14,486 | $ 867 | $ 1,250 | |||||||||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 5 | 1,714,286 | 1,428,570 | 136,923,432 | 9,023,088 | 14,117,267 | ||||||||||||||||||
Beginning balance at Mar. 31, 2021 | 46,074,280 | 91,982,825 | (45,924,869) | $ 5 | $ 171 | $ 143 | $ 13,691 | $ 902 | $ 1,412 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Conversion of convertible securities (in shares) | 1,617,067 | 350,000 | (350,000) | (1,617,067) | ||||||||||||||||||||
Conversion of convertible securities | $ 0 | $ 0 | $ 162 | $ 35 | $ (35) | $ (162) | ||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest (in shares) | 5,295,308 | |||||||||||||||||||||||
Issuance of shares of common stock for convertible note payable and accrued interest | 1,419,568 | 1,419,034 | $ 534 | |||||||||||||||||||||
Issuance of stock for acquisitions (in shares) | 643,010 | |||||||||||||||||||||||
Issuance of stock for acquisitions | 2,535,071 | 2,535,007 | $ 64 | |||||||||||||||||||||
Share-based compensation expense | 7,988 | 7,988 | ||||||||||||||||||||||
Net (loss) income | (3,127,277) | (3,127,277) | ||||||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 5 | 1,714,286 | 1,428,570 | 144,828,817 | 8,673,088 | 12,500,200 | ||||||||||||||||||
Ending balance at Jun. 30, 2021 | 46,909,630 | 95,944,854 | (49,052,146) | $ 5 | $ 171 | $ 143 | $ 14,486 | $ 867 | $ 1,250 | |||||||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 5 | 10,149 | 78,674 | 161,798,817 | 8,548,088 | 12,500,200 | ||||||||||||||||||
Beginning balance at Dec. 31, 2021 | 72,111,466 | 131,293,861 | (59,200,693) | $ 5 | $ 0 | $ 7 | $ 16,182 | $ 854 | $ 1,250 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Issuance of shares of common stock for compensation (in shares) | 39,386 | |||||||||||||||||||||||
Issuance of shares of common stock for compensation | 99,252 | 99,248 | $ 4 | |||||||||||||||||||||
Conversion of convertible securities (in shares) | (10,149) | (78,674) | 63,907 | 8,245 | ||||||||||||||||||||
Conversion of convertible securities | $ 0 | $ 0 | $ (7) | $ 7 | ||||||||||||||||||||
Share-based compensation expense | 1,026 | 1,026 | ||||||||||||||||||||||
Net (loss) income | (4,175,953) | (4,175,953) | ||||||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2022 | 5 | 0 | 0 | 161,910,355 | 8,548,088 | 12,500,200 | ||||||||||||||||||
Ending balance at Mar. 31, 2022 | 68,035,791 | 131,394,135 | (63,376,646) | $ 5 | $ 0 | $ 0 | $ 16,193 | $ 854 | $ 1,250 | |||||||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 5 | 10,149 | 78,674 | 161,798,817 | 8,548,088 | 12,500,200 | ||||||||||||||||||
Beginning balance at Dec. 31, 2021 | 72,111,466 | 131,293,861 | (59,200,693) | $ 5 | $ 0 | $ 7 | $ 16,182 | $ 854 | $ 1,250 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net (loss) income | (2,150,430) | |||||||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 5 | 0 | 0 | 162,158,324 | 8,548,088 | 12,500,200 | ||||||||||||||||||
Ending balance at Jun. 30, 2022 | 70,351,838 | 131,684,633 | (61,351,123) | $ 5 | $ 0 | $ 0 | $ 16,219 | $ 854 | $ 1,250 | |||||||||||||||
Beginning balance (in shares) at Mar. 31, 2022 | 5 | 0 | 0 | 161,910,355 | 8,548,088 | 12,500,200 | ||||||||||||||||||
Beginning balance at Mar. 31, 2022 | 68,035,791 | 131,394,135 | (63,376,646) | $ 5 | $ 0 | $ 0 | $ 16,193 | $ 854 | $ 1,250 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Issuance of shares of common stock for compensation (in shares) | 171,850 | |||||||||||||||||||||||
Issuance of shares of common stock for compensation | 132,325 | 132,307 | $ 18 | |||||||||||||||||||||
Share-based compensation expense | 103,055 | 103,055 | ||||||||||||||||||||||
Common shares issued for cash (in shares) | 76,119 | |||||||||||||||||||||||
Common shares issued for cash | 55,144 | 55,136 | $ 8 | |||||||||||||||||||||
Net (loss) income | 2,025,523 | 2,025,523 | ||||||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 5 | 0 | 0 | 162,158,324 | 8,548,088 | 12,500,200 | ||||||||||||||||||
Ending balance at Jun. 30, 2022 | $ 70,351,838 | $ 131,684,633 | $ (61,351,123) | $ 5 | $ 0 | $ 0 | $ 16,219 | $ 854 | $ 1,250 |
Organization and Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The unaudited consolidated financial statements were prepared by Alpine 4 Holdings, Inc. (‘we,” “our,” or the "Company"), pursuant to the rules and regulations of the Securities Exchange Commission ("SEC"). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") were omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company's Annual Report on Form 10-K filed with the SEC on April 14, 2022. The results for the six months ended June 30, 2022, are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The Company was incorporated under the laws of the State of Delaware on April 22, 2014. The Company was formed to serve as a vehicle to affect an asset acquisition, merger, exchange of capital stock, or other business combination with a domestic or foreign business. On March 2, 2021, the Company changed its name from Alpine 4 Technologies Ltd. to Alpine 4 Holdings, Inc. Effective April 1, 2016, the Company purchased all of the outstanding capital stock of Quality Circuit Assembly, Inc., a California corporation (“QCA”). Effective January 1, 2019, the Company purchased all of the outstanding capital stock of Morris Sheet Metal Corp., an Indiana corporation (“MSM”); JTD Spiral, Inc., an Indiana corporation wholly owned by MSM; Morris Enterprises LLC, an Indiana limited liability company; and Morris Transportation LLC, an Indiana limited liability company (collectively “Morris”). Effective November 6, 2019, the Company purchased all of the outstanding capital stock and units of Deluxe Sheet Metal, Inc., an Indiana corporation, and DSM Holding, LLC, an Indiana limited liability company; and purchased certain real estate from Lonewolf Enterprises, LLC, an Indiana limited liability company (collectively “Deluxe”). Effective February 21, 2020, the Company purchased all of the outstanding units of Excel Fabrication, LLC., an Idaho limited liability company (“Excel”). Excel subsequently changed its name to Excel Construction Services, LLC. Effective December 15, 2020, the Company purchased the assets of Impossible Aerospace Corporation, a Delaware corporation (“IA”). Effective February 8, 2021, the Company purchased the assets of Vayu (US), Inc., a Delaware corporation (“Vayu”). On May 5, 2021, the Company acquired all of the outstanding shares of stock of Thermal Dynamics International, Inc., a Delaware corporation (“TDI”). On May 10, 2021, the Company acquired all of the outstanding membership interests of KAI Enterprises, LLC, a Florida limited liability company, the sole asset of which was all of the outstanding membership interests of Alternative Laboratories, LLC, a Delaware limited liability company (“Alt Labs”). On October 20, 2021, the Company acquired 100% of the outstanding shares of Identified Technologies Corporation, a Delaware corporation (“Identified Technologies”). On November 29, 2021, the Company, and a newly formed and wholly owned subsidiary of the Company named ALPP Acquisition Corporation 3, Inc. (“AC3”), entered into a merger agreement with Elecjet Corp., (“Elecjet”) and the three Elecjet shareholders. Pursuant to the agreement, AC3 merged with and into Elecjet with Elecjet being the surviving entity following the merger. On December 9, 2021, the Company, and A4 Technologies, Inc., a wholly owned subsidiary of the Company (“A4 Technologies”), entered into a Membership Interest Purchase Agreement with DTI Services Limited Liability Company (doing business as RCA Commercial Electronics), (“DTI”), Direct Tech Sales LLC, (also having an assumed business name of RCA Commercial Electronics), (“Direct Tech”), PMI Group, LLC, (“PMI”), Continu.Us, LLC, (“Continu.Us”), Solas Ray, LLC, (“Solas”), and the individual owners of the interests of the various entities. DTI, Direct Tech, PMI, Continu.Us, and Solas were each referred to in the Membership Interest Purchase Agreement collectively as “RCA.” Pursuant to the MIPA, the Company acquired all of the outstanding membership interests of RCA. As of the date of this Report, the Company was a holding company owning, directly or indirectly, fourteen companies: •A4 Corporate Services, LLC; •ALTIA, LLC; •Quality Circuit Assembly, Inc.; •Morris Sheet Metal, Corp; •JTD Spiral, Inc.; •Excel Construction Services, LLC; •SPECTRUMebos, Inc.; •Vayu (US); •Thermal Dynamics International, Inc.; •Alternative Laboratories, LLC.; •Identified Technologies, Corp.; •Elecjet Corp.; •DTI Services Limited Liability Company (doing business as RCA Commercial Electronics); and •Global Autonomous Corporation Basis of presentation The accompanying consolidated financial statements present the balance sheets, statements of operations, stockholders' deficit and cash flows of the Company. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). Liquidity The Company’s financial statements are prepared in accordance with U.S. GAAP applicable to a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business within one year after the date the consolidated financial statements are issued. In accordance with Financial Accounting Standards Board (the “FASB”), Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. As shown in the accompanying consolidated financial statements, the Company has incurred significant recurring losses and negative cash flows from operations. These factors raise doubt about the Company's ability to continue as a going concern. While the Company experienced an operating loss for the three months ended June 30, 2022, of $2.9 million this was an improvement over the previous quarters ended March 31, 2022, and December 31, 2021, during which the Company had an operating loss of $3.6 million and $12.4 million, respectively. While the Company had a negative cash flow used in operation of $7.2 million for the six months ended June 30, 2022, it was an improvement over the same period last year, the six months ended June 30, 2021, when the Company had a negative cash flow used in operations of $14.4 million. As of June 30, 2022, the Company had positive working capital of approximately $15.3 million, which was an increase of $1.3 million compared to December 31, 2021. The Company has secured bank financing totaling $ 23.5 million in lines of credit of which approximately $9.9 million was unused. Likewise, subsequent to June 30, 2022, the Company raised net proceeds of approximately $9,175,000 from the sale of 14,492,754 shares of Class A common stock and the same number of warrants (see Note 9). As of the date of this Report, the Company had approximately $7.4 million in cash. The Company plans to continue to generate additional revenue (and improve cash flows from operations) combined with improved gross profit performance from the existing operating companies. The Company also may raise funds through debt financing, securing additional lines of credit, and the sale of shares through its planned at-the-market offering. Based on management’s plans to improve cash flows, as disclosed above management believes the Company has sufficient working capital to satisfy the Company’s estimated liquidity needs for the next 12 months. Because of the above factors, the Company believes that this alleviates the substantial doubt in connection with the Company's ability to continue as a going concern. However, there is no assurance that management’s plans will be successful due to the current economic climate in the United States and globally.
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries as of June 30, 2022 and December 31, 2021. Significant intercompany balances and transactions have been eliminated. Use of estimates The consolidated financial statements are prepared in accordance with U.S. GAAP. Preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable. In many instances, the Company could have reasonably used different accounting estimates and in other instances changes in the accounting estimates are reasonably likely to occur from period to period. This applies in particular to useful lives of long-lived assets, reserves for accounts receivable and inventory, valuation allowance for deferred tax assets, fair values assigned to intangible assets acquired, and impairment of long-lived assets. Actual results could differ significantly from our estimates. To the extent that there are material differences between these estimates and actual results, the Company’s future financial statement presentation, financial condition, results of operations and cash flows will be affected. The ultimate impact from COVID-19 on the Company’s operations and financial results during 2022 will depend on, among other things, the ultimate severity and scope of the pandemic, the pace at which governmental and private travel restrictions and public concerns about public gatherings will ease, and the speed with which the economy recovers. The Company is not able to fully quantify the impact that these factors will have on the Company’s financial results during 2022 and beyond. COVID-19 did have a negative impact on the Company’s financial performance in 2021. Our operations and performance may depend on global, regional, economic and geopolitical conditions. Russia’s invasion and military attacks on Ukraine have triggered significant sanctions from North American and European leaders. These events are currently escalating and creating increasingly volatile global economic conditions. Resulting changes in North American trade policy could trigger retaliatory actions by Russia, its allies and other affected countries, including China, resulting in a “trade war.” A trade war could result in increased costs for raw materials that we use in our manufacturing and could otherwise limit our ability to sell our products abroad. These increased costs would have a negative effect on our financial condition and profitability. Furthermore, the military conflict between Russia and Ukraine is increasing supply interruptions and further hinder our ability to find the materials we need to make our products. If the conflict between Russia and Ukraine continues for a long period of time, or if other countries become further involved in the conflict, we could face significant adverse effects to our business and financial condition. The Company is not able to fully quantify the impact that these factors will have on the Company’s financial results during 2022 and beyond. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. Cash Cash and cash equivalents consist of cash and short-term investments with original maturities of less than 90 days. As of June 30, 2022, and December 31, 2021, the Company had no cash equivalents. Major Customers The Company had one customer, W.W. Grainger Inc., that made up 10% of accounts receivable as of June 30, 2022. The Company had no customer that made up over 10% of accounts receivable as of December 31, 2021. For the six months ended June 30, 2022, the Company had one customer, W.W. Grainger Inc., that made up 12% of total revenues. For the six months ended June 30, 2021, the Company had two customers, Rivian Automotive, Inc. and Lighthouse Worldwide Solutions, that made up 15% and 10% of total revenues, respectively. For the six months ended June 30, 2022, the Company had received 10% of total revenues from prime contractors. Major Customer by Segment Manufacturing As of as of June 30, 2022, the manufacturing segment had one customer, Lighthouse Worldwide Solutions, that made up 29% of accounts receivable. As of December 31, 2021, the manufacturing segment had two customers, Rivian Automotive, Inc. and Lighthouse Worldwide Solutions, that made up 31% and 20%, respectively, of accounts receivable. For the six months ended June 30, 2022, the manufacturing segment had two customers, Rivian Automotive, Inc. and Lighthouse Worldwide Solutions, that made up 20% and 15%, respectively, of total manufacturing revenues. For the six months ended June 30, 2021, the manufacturing segment had two customers, Rivian Automotive, Inc. and Lighthouse Worldwide Solutions, that made up 34% and 23%, respectively, of total manufacturing revenues. Construction As of June 30, 2022, the construction segment had two customers, A. Hattersley & Sons, Inc., and Shambaugh & Sons L.P., that made up 34% and 17%, respectively, of accounts receivable. As of December 31, 2021, the construction segment had two customers, A. Hattersley & Sons, Inc. and Shambaugh & Sons L.P., that made up 25% and 17%, respectively, of accounts receivable. For the six months ended June 30, 2022, the construction segment had two customers, A. Hattersley & Sons, Inc. Shambaugh & Sons L.P., that made up 22% and 16%, respectively of total construction revenues. For the six months ended June 30, 2021, the construction segment had one customer, A. Hattersley & Sons, Inc., that made up 11% of total construction revenues. Defense Of the defense segment, 100% of accounts receivables and revenues were related to prime contractors. Technologies In the technologies segment, the Company had one customer, W.W. Grainger Inc., that made up 36% of accounts receivable as of June 30, 2022, and two customers, Direct Supply Inc. and W.W. Grainger Inc., that made up 14% and 30%, respectively, of accounts receivable as of December 31, 2021. For the six months ended June 30, 2022, the technology segment had one customer, W.W. Grainger Inc., that made up 31% of their total revenues. Aerospace As of December 31, 2021, the aerospace segment had one customer, Branch Civil, Inc., that made up 57% of accounts receivable. For the six months ended June 30, 2022, the aerospace segment had no customer that made up over 10% of total aerospace revenues. Fair value measurements Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. The Company's financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, convertible notes, notes payable and lines of credit. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. The carrying value of long-term debt approximates fair value since the related rates of interest approximate current market rates. As of June 30, 2022, and December 31, 2021, the Company had no financial assets or liabilities that were required to be fair valued on a recurring basis. Research and Development The Company focuses on quality control and development of new products and the improvement of existing products. All cost related to research and development activities are expensed as incurred. During the six months ended June 30, 2022 and 2021, research and development cost totaled $586,765 and $515,202, respectively. Earnings (loss) per share The Company presents both basic and diluted net income (loss) per share on the face of the consolidated statements of operations. Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted per share calculations give effect to all potentially dilutive shares of common stock outstanding during the period, including stock options and warrants, using the treasury-stock method. If antidilutive, the effect of potentially dilutive shares of common stock is ignored. The only potentially dilutive securities outstanding during the periods presented were options and warrants. The following table illustrates the computation of basic and diluted earnings per share (“EPS”) for the three and six months ended June 30, 2022 and 2021:
Revenue Recognition The Company recognizes revenue under ASC Topic 606. Revenue from contract with Customers ("Topic 606"). The following is a summary of the revenue recognition policy for each of the Company’s subsidiaries. Revenue is recognized under Topic 606 in a manner that reasonably reflects the delivery of its services and products to customers in return for expected consideration and includes the following elements: –executed contract with the Company's customers that it believes are legally enforceable; –identification of performance obligations in the respective contract; –determination of the transaction price for each performance obligation in the respective contract; –allocation of the transaction price to each performance obligation; and –recognition of revenue only when the Company satisfies each performance obligation. The following table presents our revenues disaggregated by type for the three and six months ended June 30, 2022:
The following table presents our revenues disaggregated by type for the three and six months ended June 30, 2021:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LeasesThe Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate. As of June 30, 2022, the future minimum finance and operating lease payments were as follows:
Operating Leases The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of June 30, 2022, and December 31, 2021:
The lease expense for the six months ended June 30, 2022, was $253,121. The cash paid under operating leases during the six months ended June 30, 2022, was $251,398. At June 30, 2022, the weighted average remaining lease terms were 13.9 years, and the weighted average discount rate was 6.94%. On June 23, 2022, the Company sold the building at 4740 S. Cleveland Ave. Fort Myers, Florida, for $13,200,000. The Company determined that they transferred control of the building to the buyer, has derecognized the asset, and recognized a gain on the sale of $5,597,450 and paid off the outstanding mortgage of $4,642,043. Under ASC 842 the Company simultaneously entered into a sale leaseback transaction where the building was then leased back for a term of 15 years with monthly rent payments that range from $67,708 to $89,305. The Company determined the lease to be an operating lease and recognized a right-of-use asset and operating lease liability of $8,500,000 based on the present value of the minimum lease payments discounted using an incremental borrowing rate of 7%.
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Leases | LeasesThe Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate. As of June 30, 2022, the future minimum finance and operating lease payments were as follows:
Operating Leases The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of June 30, 2022, and December 31, 2021:
The lease expense for the six months ended June 30, 2022, was $253,121. The cash paid under operating leases during the six months ended June 30, 2022, was $251,398. At June 30, 2022, the weighted average remaining lease terms were 13.9 years, and the weighted average discount rate was 6.94%. On June 23, 2022, the Company sold the building at 4740 S. Cleveland Ave. Fort Myers, Florida, for $13,200,000. The Company determined that they transferred control of the building to the buyer, has derecognized the asset, and recognized a gain on the sale of $5,597,450 and paid off the outstanding mortgage of $4,642,043. Under ASC 842 the Company simultaneously entered into a sale leaseback transaction where the building was then leased back for a term of 15 years with monthly rent payments that range from $67,708 to $89,305. The Company determined the lease to be an operating lease and recognized a right-of-use asset and operating lease liability of $8,500,000 based on the present value of the minimum lease payments discounted using an incremental borrowing rate of 7%.
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Debt |
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Debt | Debt The outstanding balances for the loans as of June 30, 2022, and December 31, 2021, were as follows:
Future scheduled maturities of outstanding debt are as follows:
In August 2020, the Company filed a lawsuit against Alan Martin regarding his note payable (See Note 8). As of June 30, 2022, the note had a balance of $2,857,500 and accrued interest of $1,598,586 which is reflected in current liabilities in the consolidated balance sheets. During 2022, the Company had four revolving lines of credit in the aggregate of $23.5 million, including one capital expenditures line of credit of $0.5 million. The revolving lines of credit used as of June 30, 2022, totaled $13.6 million with interest rates ranging from prime plus 2.50% - 4.25% and terms ranging from to two years. As of June 30, 2022, the Company had $9.9 million in additional funds available to borrow. The Company is required to maintain covenants including financial ratios as a condition of the line of credit agreements. As of the date of this Report, the Company was in compliance with these covenants. In June 2022, the Company paid the outstanding principal balance of $2,374,061 on three notes payable due to the sellers of Morris Sheet Metal, Corp. that matured during the year.
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Stockholders' Equity |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity Common Stock The Company had the following transactions in its common stock during the six months ended June 30, 2022: •In January 2022, the Company issued 72,152 shares of Class A common stock for no additional consideration upon conversion of 10,149 shares of Series C Preferred Stock and 78,674 of Series D Preferred Stock. •In March 2022, the Company issued 39,386 shares of Class A common stock for services with a value of $99,252. •On January 13, 2022, the Company amended the Corporation's Amended and Restated Certificate of Incorporation increasing the authorized capital stock from 195,000,000 to 295,000,000. •On April 29, 2022, the Company issued 171,850 shares of Class A common stock at a value of $132,325 as employee compensation. •During May and June 2022, the Company issued 76,119 shares of Class A common stock for cash of $55,144 in connection with a registered at-the-market offering (the "ATM Offering"). Stock Options The following summarizes the stock option activity for the six months ended June 30, 2022:
The following table summarizes information about options outstanding and exercisable as of June 30, 2022:
During the six months ended June 30, 2022 and 2021, stock option expense amounted to $104,081 and $27,329, respectively. Unrecognized stock option expense as of June 30, 2022, amounted to $1,483,595, which will be recognized over a period extending through April 2025. During the six months ended June 30, 2022, the Company issued 2,084,620 options in connection with the Company's Employee Stock Option Plan ("ESOP"). The options have an exercise price of $0.77, vest annually over a three year vesting period and expire on April 29, 2032. The fair value of the 2,084,620 options issued in connection with the ESOP is $1,586,650, and was determined using the Black-Scholes option pricing model with the following assumptions:
Warrants The following summarizes the warrants activity for the six months ended June 30, 2022:
The following table summarizes information about warrants outstanding and exercisable as of June 30, 2022:
During the year ended December 31, 2021, the Company issued 416,667 warrants to a placement agent in connection with sale of its common stock The warrants have an exercise price of $6.60, are exercisable as of August 16, 2021 and expire on February 16, 2025. The Company issued another 428,571 warrants to a placement agent in connection with the sale of its common stock. The warrants have an exercise price of $3.08, are exercisable as of May 26, 2022, and expire November 22, 2026. The Company issued another 396,825 warrants in connection with the RCA acquisition. The warrants have an exercise price of $2.52, were exercisable as of December 9, 2021, and expire December 9, 2024. The fair value of the 416,667, the 428,571, and the 396,825 warrants issued to the placement agent and RCA sellers during the year ended December 31, 2021, are $2,498,637, $902,414, and $668,863 respectively, and was determined using the Black-Scholes option pricing model with the following assumptions:
The fair value of the warrants was recorded as offering costs with a corresponding credit to additional paid in capital.
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Business Combinations |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations DTI Services (doing business as RCA Commercial Electronics) ("RCA") On December 13, 2021, the Company closed the acquisition of RCA. The acquisition was considered an acquisition of a business under ASC 805. The business combination accounting is not yet complete and the amounts assigned to assets acquired and liabilities assumed are provisional. Therefore, this may result in future adjustment to the provisional amounts as new information is obtained about facts and circumstances that existed at the acquisition date. A summary of the purchase price allocation at fair value is presented below:
The purchase price was paid as follows:
The following are the unaudited pro forma results of operations for the three and six months ended June 30, 2021, as if Vayu, TDI, Alt Labs, Identified Technologies, Elecjet, and RCA had been acquired on January 1, 2021. The pro forma results include estimates and assumptions which management believes are reasonable. However, pro forma results do not include any anticipated cost savings or other effects of the planned integration of these entities, and are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the dates indicated.
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Segment Reporting |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company discloses segment information that is consistent with the way in which management operates and views its business. Effective during the quarter ended June 30, 2022, the Company has reduced its reportable segments to five operating segments as represented by the Company’s five silo companies: A4 Construction Services, Inc.; A4 Manufacturing, Inc.; A4 Technologies, Inc.; A4 Aerospace Corporation; and A4 Defense Systems, Inc. The Company’s reportable segments for the three and six months ended June 30, 2022, and June 30, 2021, and as of June 30, 2022, and December 31, 2021, were as follows:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Licensing Agreement DTI has entered into licensing agreements with RCA Trademark Management for the licensing rights to the respective trademarks in the United States of America and Canada. The RCA licensing agreement was amended with Technicolor, S.A., as licensor and expires December 31, 2024. DTI agreed to pay a royalty fee of 2.5% on net sales of the licensed products with a minimum annual payment of $420,000 for the years ended 2020 and 2021, $440,000 for the year ended 2022, $460,000 for the year ended 2023, and $480,000 for the year ended 2024. Warranty Service Agreement DTI entered into a warranty service agreement to provide certain warranty services for a lighting supplier through December 31, 2024, except for one class of customer, for whom services will be provided through 2030. In exchange for these services, DTI receives annual payments as follows: Years Ending June 30,
Royalty Agreement On November 28, 2021, the Company entered into a Royalty Agreement with the sellers of Elecjet. In the Royalty Agreement, the Company noted that upon closing of the merger with Elecjet, the Company desired to build its initial factory (“Factory”) to manufacture batteries in the United States. The Company agreed to pay the sellers 1.5% of net sales for batteries produced by the Factory. Royalty payments shall continue to be paid for a period of ten years from the starting date, or until the total of the royalty payments equals $50 million, whichever occurs first. Legal Proceedings From time to time, the Company may become involved in lawsuits and other legal proceedings that arise in the course of business. Litigation is subject to inherent uncertainties, and it is not possible to predict the outcome of litigation with total confidence. As of the date of this Report, the Company was not aware of any legal proceedings or potential claims against it whose outcome would be likely, individually or in the aggregate, to have a material adverse effect on the Company’s business, financial condition, operating results, or cash flows, except as set forth below. In June 2020, the Company’s subsidiary Excel Fabrication, LLC filed a lawsuit against Fusion Mechanical, LLC, in the Fifth Judicial District Court, State of Idaho (Case Number CV42-20-2246). The Company claimed tortious interference and trade secret violations by the defendant. The defendant filed a motion to dismiss, which was denied by the Court. As of the date of this Report, discovery was proceeding. The defendant filed a second motion to dismiss and the Company filed a memorandum in response to the second motion to dismiss, for which a hearing was held on May 10, 2021. On June 11, 2021, the court issued a decision narrowing the claims of the plaintiffs to three items: breach of contract, good faith and fair dealings and intentional interference for economic advantage. These were the Company’s three main points of contention. As of the date of this Report, trial is set for Spring 2023. In August 2020, the Company filed a lawsuit in the United States District Court, District of Arizona (Case No.2:20-cv-01679-DJH), against Alan Martin, the seller of Horizon Well Testing LLC (“HWT”) dba Venture West Energy Services, LLC. The Company brought claims for breach of contract, including but not limited to breaches of the seller’s representations and warranties in the purchase agreement in connection with the acquisition of HWT. The defendant answered and counterclaimed, claiming breach by the Company of its obligation to issue a promissory note (to be issued in connection with the acquisition of HWT). As of the date of this Report, the discovery period had ended but no trial date had been scheduled. A summary judgement motion was filed on December 22, 2021, and was fully briefed and submitted for decision in January 2022. That motion was pending as of the date of this Report. In May 2021, the Company and several shareholders filed a lawsuit in the United States District Court for the District of Arizona (Case number 2:21-cv-00886-MTL) against Fin Capital LLC ("Fin Cap"), and Grizzly Research LLC ("Grizzly") alleging securities fraud, tortious interference with business expectancy and libel slander for disseminating false and misleading statements about Alpine 4 and its employees to manipulate the stock price and further their own financial interests. As of the date of this Report Fin Capital and Grizzly Research LLC filed motions to dismiss for lack of jurisdiction. The Court has denied Fin Capital’s motion to dismiss and granted the Grizzly Research motion. However, the Court granted the Company until May 12, 2022, to file an amended complaint. The Company subsequently filed its first amended complaint. In June 2022, both Grizzly and Finn moved to dismiss the first amended complaint. As of the date of this Report, those motions were still pending. The Court denied motions of Grizzly and Finn relating to the filing of the joint planning report and and entered the scheduling order. Because the scheduling order is now in place, the Company will be moving forward with discovery. In August 2021, Rob Porter filed a lawsuit in the District Court of Oklahoma County, State of Oklahoma (CJ-2021-3421), alleging unjust enrichment and breach of contract. In October 2021, the Company filed its answer denying such claims. In October 2021, the Company also filed counterclaims against Mr. Porter for conversion and breach of fiduciary duties. The Company believes this is a frivolous lawsuit. As of the date of this Report, the Company had agreed on a scheduling order with counsel for Mr. Porter, and the Company was participating in discovery. In October 2021, the Company received three complaints in the District Court of Oklahoma Country State of Oklahoma from former VWES employees Bruce Morse (CJ-2021-4316), Brian Hobbs (CJ-2021-4315), Thomas Karraker (CJ-2021-4314) for unjust enrichment, and breach of contract. On January 19, 2022, the Company filed answers to all three lawsuits that denied these claims. The Company believes these are frivolous lawsuits. In July 2022, the Company and Mr. Morse settled his claims against the Company. The settlement included the cash payment of $24,375 for Mr. Morse's claimed 37,500 shares of Class A Common stock. A stipulated motion to sever Mr. Morses's case from those of Messrs. Hobbs and Karraker has been sent to counsel for Mr. Morse for approval and filing with the court. In July 2022, Mr. Hobbs also expressed interest in settling his claims on similar terms. Negotiations with Mr. Hobbs were ongoing as of the date of this Report. As of the date of this Report, Mr. Karraker's lawsuit was proceeding.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In July 2022, the Company sold 14,492,754 shares of Class A common stock and 14,492,754 warrants to certain investors, under a registered direct offering, for net proceeds of $9,175,000. The warrants have an exercise price of $0.69 per share and a term of 5 years. In July 2022, the Company issued 60,600 shares of Class A common stock for cash of $40,910 in connection with its ATM offering. In July 2022, the Company's subsidiary ElecJet paid a license fee of $250,000 and a follow up $300,000 fee in conjunction with the development of its AX-03 solid state battery. In August 2022, certain investors exercised 1,449,276 warrants for cash proceeds of approximately $1,000,000.
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of accounting, policy | The accompanying consolidated financial statements present the balance sheets, statements of operations, stockholders' deficit and cash flows of the Company. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries as of June 30, 2022 and December 31, 2021. Significant intercompany balances and transactions have been eliminated.
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Use of estimates | Use of estimates The consolidated financial statements are prepared in accordance with U.S. GAAP. Preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable. In many instances, the Company could have reasonably used different accounting estimates and in other instances changes in the accounting estimates are reasonably likely to occur from period to period. This applies in particular to useful lives of long-lived assets, reserves for accounts receivable and inventory, valuation allowance for deferred tax assets, fair values assigned to intangible assets acquired, and impairment of long-lived assets. Actual results could differ significantly from our estimates. To the extent that there are material differences between these estimates and actual results, the Company’s future financial statement presentation, financial condition, results of operations and cash flows will be affected. The ultimate impact from COVID-19 on the Company’s operations and financial results during 2022 will depend on, among other things, the ultimate severity and scope of the pandemic, the pace at which governmental and private travel restrictions and public concerns about public gatherings will ease, and the speed with which the economy recovers. The Company is not able to fully quantify the impact that these factors will have on the Company’s financial results during 2022 and beyond. COVID-19 did have a negative impact on the Company’s financial performance in 2021. Our operations and performance may depend on global, regional, economic and geopolitical conditions. Russia’s invasion and military attacks on Ukraine have triggered significant sanctions from North American and European leaders. These events are currently escalating and creating increasingly volatile global economic conditions. Resulting changes in North American trade policy could trigger retaliatory actions by Russia, its allies and other affected countries, including China, resulting in a “trade war.” A trade war could result in increased costs for raw materials that we use in our manufacturing and could otherwise limit our ability to sell our products abroad. These increased costs would have a negative effect on our financial condition and profitability. Furthermore, the military conflict between Russia and Ukraine is increasing supply interruptions and further hinder our ability to find the materials we need to make our products. If the conflict between Russia and Ukraine continues for a long period of time, or if other countries become further involved in the conflict, we could face significant adverse effects to our business and financial condition. The Company is not able to fully quantify the impact that these factors will have on the Company’s financial results during 2022 and beyond.
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Cash | Cash Cash and cash equivalents consist of cash and short-term investments with original maturities of less than 90 days. |
Major customers | Major Customers The Company had one customer, W.W. Grainger Inc., that made up 10% of accounts receivable as of June 30, 2022. The Company had no customer that made up over 10% of accounts receivable as of December 31, 2021. For the six months ended June 30, 2022, the Company had one customer, W.W. Grainger Inc., that made up 12% of total revenues. For the six months ended June 30, 2021, the Company had two customers, Rivian Automotive, Inc. and Lighthouse Worldwide Solutions, that made up 15% and 10% of total revenues, respectively. For the six months ended June 30, 2022, the Company had received 10% of total revenues from prime contractors. Major Customer by Segment Manufacturing As of as of June 30, 2022, the manufacturing segment had one customer, Lighthouse Worldwide Solutions, that made up 29% of accounts receivable. As of December 31, 2021, the manufacturing segment had two customers, Rivian Automotive, Inc. and Lighthouse Worldwide Solutions, that made up 31% and 20%, respectively, of accounts receivable. For the six months ended June 30, 2022, the manufacturing segment had two customers, Rivian Automotive, Inc. and Lighthouse Worldwide Solutions, that made up 20% and 15%, respectively, of total manufacturing revenues. For the six months ended June 30, 2021, the manufacturing segment had two customers, Rivian Automotive, Inc. and Lighthouse Worldwide Solutions, that made up 34% and 23%, respectively, of total manufacturing revenues. Construction As of June 30, 2022, the construction segment had two customers, A. Hattersley & Sons, Inc., and Shambaugh & Sons L.P., that made up 34% and 17%, respectively, of accounts receivable. As of December 31, 2021, the construction segment had two customers, A. Hattersley & Sons, Inc. and Shambaugh & Sons L.P., that made up 25% and 17%, respectively, of accounts receivable. For the six months ended June 30, 2022, the construction segment had two customers, A. Hattersley & Sons, Inc. Shambaugh & Sons L.P., that made up 22% and 16%, respectively of total construction revenues. For the six months ended June 30, 2021, the construction segment had one customer, A. Hattersley & Sons, Inc., that made up 11% of total construction revenues. Defense Of the defense segment, 100% of accounts receivables and revenues were related to prime contractors. Technologies In the technologies segment, the Company had one customer, W.W. Grainger Inc., that made up 36% of accounts receivable as of June 30, 2022, and two customers, Direct Supply Inc. and W.W. Grainger Inc., that made up 14% and 30%, respectively, of accounts receivable as of December 31, 2021. For the six months ended June 30, 2022, the technology segment had one customer, W.W. Grainger Inc., that made up 31% of their total revenues. Aerospace As of December 31, 2021, the aerospace segment had one customer, Branch Civil, Inc., that made up 57% of accounts receivable. For the six months ended June 30, 2022, the aerospace segment had no customer that made up over 10% of total aerospace revenues.
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Fair value measurements | Fair value measurements Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. The Company's financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, convertible notes, notes payable and lines of credit. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. The carrying value of long-term debt approximates fair value since the related rates of interest approximate current market rates. As of June 30, 2022, and December 31, 2021, the Company had no financial assets or liabilities that were required to be fair valued on a recurring basis.
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Research and development | Research and DevelopmentThe Company focuses on quality control and development of new products and the improvement of existing products. All cost related to research and development activities are expensed as incurred. |
Earnings (loss) per share | Earnings (loss) per share The Company presents both basic and diluted net income (loss) per share on the face of the consolidated statements of operations. Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted per share calculations give effect to all potentially dilutive shares of common stock outstanding during the period, including stock options and warrants, using the treasury-stock method. If antidilutive, the effect of potentially dilutive shares of common stock is ignored. The only potentially dilutive securities outstanding during the periods presented were options and warrants.
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Revenue recognition | The following is a summary of the revenue recognition policy for each of the Company’s subsidiaries. Revenue is recognized under Topic 606 in a manner that reasonably reflects the delivery of its services and products to customers in return for expected consideration and includes the following elements: –executed contract with the Company's customers that it believes are legally enforceable; –identification of performance obligations in the respective contract; –determination of the transaction price for each performance obligation in the respective contract; –allocation of the transaction price to each performance obligation; and –recognition of revenue only when the Company satisfies each performance obligation.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted EPS | The following table illustrates the computation of basic and diluted earnings per share (“EPS”) for the three and six months ended June 30, 2022 and 2021:
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Disaggregation of Revenue | The following table presents our revenues disaggregated by type for the three and six months ended June 30, 2022:
The following table presents our revenues disaggregated by type for the three and six months ended June 30, 2021:
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Lease, Liability, Fiscal Year Maturity | As of June 30, 2022, the future minimum finance and operating lease payments were as follows:
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Lessee, Operating Lease, Liability, Maturity | As of June 30, 2022, the future minimum finance and operating lease payments were as follows:
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Assets And Liabilities, Lessee | The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of June 30, 2022, and December 31, 2021:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Payable | The outstanding balances for the loans as of June 30, 2022, and December 31, 2021, were as follows:
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Schedule of Maturities of Long-term Debt | Future scheduled maturities of outstanding debt are as follows:
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Stockholders' Equity (Tables) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Activity | The following summarizes the stock option activity for the six months ended June 30, 2022:
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Share-based Payment Arrangement, Option, Exercise Price Range | The following table summarizes information about options outstanding and exercisable as of June 30, 2022:
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Schedule of Stockholders' Equity Note, Warrants or Rights | The following summarizes the warrants activity for the six months ended June 30, 2022:
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Schedule of Warrants Outstanding and Exercisable | The following table summarizes information about warrants outstanding and exercisable as of June 30, 2022:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of the 2,084,620 options issued in connection with the ESOP is $1,586,650, and was determined using the Black-Scholes option pricing model with the following assumptions:
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Business Combinations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | A summary of the purchase price allocation at fair value is presented below:
The purchase price was paid as follows:
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Business and Asset Acquisition, Pro Forma Information | The following are the unaudited pro forma results of operations for the three and six months ended June 30, 2021, as if Vayu, TDI, Alt Labs, Identified Technologies, Elecjet, and RCA had been acquired on January 1, 2021. The pro forma results include estimates and assumptions which management believes are reasonable. However, pro forma results do not include any anticipated cost savings or other effects of the planned integration of these entities, and are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the dates indicated.
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The Company’s reportable segments for the three and six months ended June 30, 2022, and June 30, 2021, and as of June 30, 2022, and December 31, 2021, were as follows:
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Commitment and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Annual Payments for Warranty Services | In exchange for these services, DTI receives annual payments as follows:Years Ending June 30,
|
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash and Restricted Cash (Details) - USD ($) |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounting Policies [Abstract] | ||
Cash equivalents | $ 0 | $ 0 |
Summary of Significant Accounting Policies - Research and Development (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Accounting Policies [Abstract] | ||||
Research and development | $ 394,835 | $ 515,202 | $ 586,765 | $ 515,202 |
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Accounting Policies [Abstract] | ||||||
Net income (loss) | $ 2,025,523 | $ (4,175,953) | $ (3,127,277) | $ (6,129,468) | $ (2,150,430) | $ (9,256,745) |
Basic (in shares) | 183,198,579 | 161,712,406 | 183,124,480 | 158,184,050 | ||
Basic income (loss) per share (in dollars per share) | $ 0.01 | $ (0.02) | $ (0.01) | $ (0.06) | ||
Stock options and warrants (in shares) | $ 992,353 | $ 0 | $ 0 | $ 0 | ||
Net income (loss), diluted EPS | $ 2,025,523 | $ (3,127,277) | $ (2,150,430) | $ (9,256,745) | ||
Diluted (in shares) | 184,190,932 | 161,712,406 | 183,124,480 | 158,184,050 | ||
Diluted income (loss) per share (in dollars per share) | $ 0.01 | $ (0.02) | $ (0.01) | $ (0.06) |
Leases - Schedule of Future Minimum Lease Payments for Capital Leases (Details) - USD ($) |
Jun. 30, 2022 |
Jun. 23, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Finance Leases | |||
2023 | $ 1,919,067 | ||
2024 | 1,938,189 | ||
2025 | 1,944,187 | ||
2026 | 1,848,756 | ||
2027 | 1,890,900 | ||
Thereafter | 15,815,312 | ||
Total payments | 25,356,411 | ||
Less: imputed interest | (9,704,751) | ||
Total obligation | 15,651,660 | ||
Less: current portion | (689,804) | $ (649,343) | |
Non-current financing leases obligations | 14,961,856 | 15,319,467 | |
Operating Leases | |||
2023 | 1,323,145 | ||
2024 | 1,350,970 | ||
2025 | 1,207,752 | ||
2026 | 862,231 | ||
2027 | 879,476 | ||
Thereafter | 9,911,924 | ||
Total payments | 15,535,498 | ||
Less: imputed interest | (5,753,381) | ||
Total obligation | 9,782,117 | $ 8,500,000 | 1,495,158 |
Less: current portion | (671,371) | (428,596) | |
Non-current financing leases obligations | $ 9,110,746 | $ 1,066,562 |
Leases - Schedule of Right of Use Assets and Lease Liabilities (Details) - USD ($) |
Jun. 30, 2022 |
Jun. 23, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Assets | |||
Operating lease assets | $ 9,735,784 | $ 1,460,206 | |
Liabilities | |||
Current Operating lease liability | 671,371 | 428,596 | |
Non-current Operating lease liability | 9,110,746 | 1,066,562 | |
Total obligation | $ 9,782,117 | $ 8,500,000 | $ 1,495,158 |
Leases - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 23, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Lessee, Lease, Description [Line Items] | ||||||
Lease expense | $ 253,121 | |||||
Cash paid under operating leases during period | $ 251,398 | |||||
Operating lease, weighted average remaining lease term | 13 years 10 months 24 days | 13 years 10 months 24 days | ||||
Operating lease, weighted average discount rate (as a percent) | 6.94% | 6.94% | ||||
Proceeds from sale of building | $ 13,200,000 | |||||
Gain on sale of property | 5,597,450 | $ 5,597,450 | $ 0 | $ 5,597,450 | $ 0 | |
Settlement of mortgage | $ 4,642,043 | |||||
Sale leaseback transaction, term | 15 years | |||||
Operating lease liability | $ 8,500,000 | $ 9,782,117 | $ 9,782,117 | $ 1,495,158 | ||
Operating lease, discount rate (as a percent) | 7.00% | |||||
Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Monthly operating lease obligation | $ 67,708 | |||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Monthly operating lease obligation | $ 89,305 |
Debt - Schedule of Outstanding Balances (Details) - USD ($) |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Total current | $ 11,210,709 | $ 10,164,013 |
Total | 20,728,319 | 24,230,169 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total current | 8,091,942 | 4,473,489 |
Long-term debt | 5,458,338 | 5,640,051 |
Secured Debt and Notes Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,059,272 | 8,426,105 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Total current | 86,173 | 61,640 |
Notes Payable | ||
Debt Instrument [Line Items] | ||
Total current | $ 3,032,594 | $ 5,628,884 |
Debt - Future Scheduled Maturities (Details) - USD ($) |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Disclosure [Abstract] | ||
2023 | $ 11,210,709 | |
2024 | 7,745,512 | |
2025 | 1,617,748 | |
2026 | 53,443 | |
2027 | 35,907 | |
Thereafter | 65,000 | |
Total | $ 20,728,319 | $ 24,230,169 |
Business Combinations - Schedule of Pro Forma Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2021 |
|
Business Combination and Asset Acquisition [Abstract] | ||
Sales | $ 27,419,003 | $ 51,900,467 |
Cost of goods sold | 18,792,686 | 36,584,402 |
Gross profit | 8,626,317 | 15,316,065 |
Operating expenses | 9,601,812 | 18,416,828 |
Loss from operations | (975,495) | (3,100,763) |
Net income (loss) | $ (1,257,704) | $ (3,818,063) |
Net loss per share | $ (0.01) | $ (0.02) |
Segment Reporting (Details) |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
company
|
Mar. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
|
Mar. 31, 2021
USD ($)
|
Jun. 30, 2022
USD ($)
segment
company
|
Jun. 30, 2021
USD ($)
|
|
Segment Reporting [Abstract] | |||||||
Number of operating segments | segment | 5 | ||||||
Number of silo companies | company | 5 | 5 | |||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | $ 25,271,126 | $ 14,130,730 | $ 50,863,280 | $ 22,540,269 | |||
Gross profit | 6,609,719 | 3,964,060 | 12,247,176 | 4,718,679 | |||
Income (loss) from operations | (2,868,113) | $ (3,600,000) | $ (12,400,000) | (2,904,217) | (6,467,824) | (7,976,286) | |
Depreciation and amortization | 1,484,519 | 950,738 | 2,889,910 | 1,673,164 | |||
Interest Expense | 962,474 | 1,216,587 | 1,571,435 | 2,688,310 | |||
Net income (loss) | 2,025,523 | $ (4,175,953) | (3,127,277) | $ (6,129,468) | (2,150,430) | (9,256,745) | |
Total Assets | 135,238,785 | 133,035,323 | 135,238,785 | ||||
Goodwill | 21,937,634 | 21,937,634 | 21,937,634 | ||||
Accounts receivable, net | 13,016,990 | 11,875,176 | 13,016,990 | ||||
Unallocated and eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Income (loss) from operations | (2,284,691) | (1,927,659) | (4,457,152) | (2,932,336) | |||
Depreciation and amortization | 158,807 | 8,807 | 317,614 | 56,908 | |||
Interest Expense | 493,763 | 788,609 | 751,468 | 1,736,140 | |||
Net income (loss) | (2,725,526) | (2,600,729) | (5,133,724) | (4,552,937) | |||
Total Assets | 10,170,480 | 10,507,786 | 10,170,480 | ||||
Construction Services | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 5,669,259 | 5,428,221 | 9,725,463 | 10,099,451 | |||
Gross profit | 165,320 | 871,860 | 530,152 | 714,202 | |||
Goodwill | 113,592 | 113,592 | 113,592 | ||||
Accounts receivable, net | 4,344,834 | 4,193,243 | 4,344,834 | ||||
Construction Services | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Income (loss) from operations | (391,838) | (752,731) | (1,027,526) | (2,856,533) | |||
Depreciation and amortization | 304,259 | 421,326 | 470,663 | 754,048 | |||
Interest Expense | 185,863 | 300,634 | 350,873 | 682,470 | |||
Net income (loss) | (577,533) | (193,937) | (1,321,875) | (2,674,205) | |||
Total Assets | 18,125,882 | 13,985,561 | 18,125,882 | ||||
Manufacturing | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 7,530,475 | 7,557,404 | 16,178,570 | 11,295,713 | |||
Gross profit | 2,123,788 | 2,631,982 | 4,127,957 | 3,544,259 | |||
Goodwill | 8,036,200 | 8,036,200 | 8,036,200 | ||||
Accounts receivable, net | 3,473,169 | 3,192,030 | 3,473,169 | ||||
Manufacturing | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Income (loss) from operations | (435,960) | 477,949 | (1,089,309) | 732,138 | |||
Depreciation and amortization | 436,424 | 416,264 | 918,111 | 579,623 | |||
Interest Expense | 221,505 | 126,519 | 351,494 | 268,875 | |||
Net income (loss) | 5,130,225 | 366,412 | 4,284,460 | 457,659 | |||
Total Assets | 44,217,346 | 39,964,186 | 44,217,346 | ||||
Defense | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 2,472,207 | 1,145,105 | 5,160,188 | 1,145,105 | |||
Gross profit | 1,285,732 | 460,218 | 2,128,921 | 460,218 | |||
Goodwill | 6,426,786 | 6,426,786 | 6,426,786 | ||||
Accounts receivable, net | 1,246,766 | 1,371,184 | 1,246,766 | ||||
Defense | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Income (loss) from operations | 783,704 | 3,622 | 1,206,844 | 3,622 | |||
Depreciation and amortization | 72,090 | 56,217 | 144,180 | 56,217 | |||
Interest Expense | 0 | 825 | 0 | 825 | |||
Net income (loss) | 783,704 | 6,384 | 1,206,844 | 6,384 | |||
Total Assets | 10,688,747 | 11,982,580 | 10,688,747 | ||||
Technologies | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 9,255,658 | 0 | 19,049,646 | 0 | |||
Gross profit | 2,858,396 | 0 | 4,980,695 | 0 | |||
Goodwill | 5,447,746 | 5,447,746 | 5,447,746 | ||||
Accounts receivable, net | 3,753,021 | 2,998,945 | 3,753,021 | ||||
Technologies | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Income (loss) from operations | 401,833 | 0 | 691,610 | 0 | |||
Depreciation and amortization | 245,852 | 0 | 489,565 | 0 | |||
Interest Expense | 60,431 | 0 | 115,248 | 0 | |||
Net income (loss) | 337,857 | 0 | 572,817 | 0 | |||
Total Assets | 41,299,819 | 39,516,284 | 41,299,819 | ||||
Aerospace | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 343,527 | 0 | 749,413 | 0 | |||
Gross profit | 176,483 | 0 | 479,451 | 0 | |||
Goodwill | 1,913,310 | 1,913,310 | 1,913,310 | ||||
Accounts receivable, net | 199,200 | 119,774 | 199,200 | ||||
Aerospace | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Income (loss) from operations | (941,161) | (705,398) | (1,792,291) | (2,923,177) | |||
Depreciation and amortization | 267,087 | 48,124 | 549,777 | 226,368 | |||
Interest Expense | 912 | 0 | 2,352 | 0 | |||
Net income (loss) | (923,204) | $ (705,407) | (1,758,952) | $ (2,493,646) | |||
Total Assets | $ 10,736,511 | $ 17,078,926 | $ 10,736,511 |
Commitment and Contingencies - Narrative (Details) |
1 Months Ended | ||||
---|---|---|---|---|---|
Jan. 19, 2022
lawsuit
|
Nov. 28, 2021
USD ($)
|
Jul. 31, 2022
USD ($)
shares
|
Oct. 31, 2021
complaint
|
Jun. 30, 2022
USD ($)
|
|
Complaints In Discount Court of Oklahoma Country State of Oklahoma | |||||
Other Commitments [Line Items] | |||||
Loss contingency, number of claims | 3 | 3 | |||
Subsequent Event | Settled Litigation | Complaints In Discount Court of Oklahoma Country State of Oklahoma | |||||
Other Commitments [Line Items] | |||||
Litigation settlement amount | $ 24,375 | ||||
Number of shares settled | shares | 37,500 | ||||
Licensing Agreement | |||||
Other Commitments [Line Items] | |||||
Royalty fee (as a percent) | 2.50% | ||||
Minimum annual payment, year one | $ 420,000 | ||||
Minimum annual payment, year two | 420,000 | ||||
Minimum annual payment, year three | 440,000 | ||||
Minimum annual payment, year four | 460,000 | ||||
Minimum annual payment, year five | $ 480,000 | ||||
Royalty Agreements | |||||
Other Commitments [Line Items] | |||||
Payment as a percentage of net sales | 1.50% | ||||
Royalty agreement, term | 10 years | ||||
Total royalty payment | $ 50,000,000 |
Commitment and Contingencies - Annual Payments For Warranty Services (Details) |
Jun. 30, 2022
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 66,626 |
2024 | 59,964 |
Total | $ 126,590 |
Subsequent Events (Details) - Subsequent Event - USD ($) |
1 Months Ended | |||
---|---|---|---|---|
Aug. 11, 2022 |
Jul. 11, 2022 |
Aug. 11, 2022 |
Jul. 31, 2022 |
|
Subsequent Event [Line Items] | ||||
Proceeds from warrant exercises | $ 1,000,000 | |||
ElecJet | ||||
Subsequent Event [Line Items] | ||||
Payment of license fee | $ 250,000 | |||
Follow up license fee payment | $ 300,000 | |||
Registered Direct Offering | ||||
Subsequent Event [Line Items] | ||||
Sale of stock, consideration received on transaction | $ 9,175,000 | |||
Warrant | ||||
Subsequent Event [Line Items] | ||||
Number of warrants exercised (in shares) | 1,449,276 | |||
Warrant | Registered Direct Offering | ||||
Subsequent Event [Line Items] | ||||
Sale of stock, shares issued | 14,492,754 | |||
Common stock, at a combined price per share and warrant (in dollar per share) | $ 0.69 | |||
Warrant term (in years) | 5 years | |||
Class A Common Stock | ||||
Subsequent Event [Line Items] | ||||
Stock issued (in shares) | 14,492,754 | 60,600 | ||
Value of stock issued | $ 40,910 | |||
Class A Common Stock | Registered Direct Offering | ||||
Subsequent Event [Line Items] | ||||
Sale of stock, shares issued | 14,492,754 |
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