Contingent Acquisition Consideration

12 Months Ended

Dec. 31, 2021

Loss Contingency [Abstract]

CONTINGENT ACQUISITION CONSIDERATION

NOTE 17 – CONTINGENT ACQUISITION CONSIDERATION

Contingent acquisition consideration as of December 31, 2021 and 2020 was comprised of the following:

	December 31,
	2021			2020
Fair value of HCFM contingent acquisition consideration	$	172,124		$	301,236
Fair value of CHM contingent acquisition consideration		276,529			682,661
Fair value of MOD contingent acquisition consideration		737,037			516,543
Total contingent acquisition consideration		1,185,690			1,500,440
Less: long term portion		(782,224	)		(798,479	)
Contingent acquisition consideration, current portion	$	403,466		$	701,961

Contingent acquisition consideration relates to future earn-out payments potentially payable related to the Company’s acquisitions of HCFM, CHM and MOD. The terms of the earn-outs related to each acquisition require the Company to pay the former owners additional acquisition consideration for the achievement of prescribed revenue and/or earnings targets for performance of the underlying business for up to four years after the respective acquisition date. Contingent acquisition consideration for each entity is recorded at fair value using a probability-weighted discounted cash flow projection. The fair value of the contingent acquisition consideration is remeasured at the end of each reporting period and changes are included in the statement of operations under the caption “Change in fair value of contingent acquisition consideration.” Gain (loss) from the change in fair value of contingent acquisition consideration was ($373,656) and $75,952 during the years ended December 31, 2021 and 2020, respectively.

Maturities of contingent acquisition consideration were as follows as of December 31, 2021:

2022	$	403,466
2023		391,486
2024		390,738
	$	1,185,690