Business Combinations

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Business Combinations

Note 5. Business Combinations

Purchase accounting

On February 1, 2019, the Company’s shareholders exchanged all of its outstanding shares in exchange for 5,263,158 shares of Alliance common stock. Due to the Company’s shareholders acquiring a controlling interest in Alliance after acquisition, the transaction was treated as a reverse merger for accounting purposes, with SCWorx being the reporting company. In accordance with purchase accounting rules under ASC 805, the purchase consideration was $11,765,491.

The acquisition was accounted for under the acquisition method of accounting. The assets acquired, liabilities assumed and purchase allocation, which is based on valuations of management, are as follows:

	Fair Value
Cash	$	5,441,437
Goodwill		8,366,467
Identifiable intangible assets:
Ticketing software		64,000
Promoter relationships		176,000
Total identifiable intangible assets		240,000
Account payable		(1,901,624	)
Current liabilities - discontinued operations		(380,789	)
Aggregate purchase price	$	11,765,491

Identified intangible assets consist of the following:

		December 31, 2020
Intangible assets	Useful life	Gross assets		Accumulated amortization			Net
Ticketing software	2 years	$	64,000	$	(64,000	)	$	-
Promoter relationships	2 years		176,000		(176,000	)		-
Total intangible assets		$	240,000	$	(240,000	)	$	-

During the year ended December 31, 2020, the Company determined that while its ticketing platform was still active, the negative impact that COVID 19 had on the overall MMA industry where it is currently being utilized had potentially lessened its useful life as currently deployed. Because of this potential impact, management has chosen to shorten the projected useful life of these assets and accelerate their amortization accordingly.

Amortization expense for the year ended December 31, 2020 was $205,219.

Goodwill

There were no changes to the carrying value of goodwill for the years ended December 31, 2021 and 2020.