ACQUISITION

6 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

ACQUISITION

NOTE 13 – ACQUISITION

On March 29, 2021, the Company completed the acquisition of certain assets of Rockland Management Group, located in West Yonkers. The Company used an incremental borrowing rate of 4% to value the right to use asset in connection with the assumed operating lease obligation. We made a preliminary fair value determination of the acquired assets and assumed liabilities as follows:

Property and equipment	$	650
Right to use assets		434
Intangible assets		150
Security Deposit		39
Right to use liability		(434	)
Goodwill		284
Total purchase consideration	$	1,123

In accordance with ASC 805-10-25-1, Business Combinations – Overall Recognition, the Company recorded the transaction as a business combination. ASC 805-10-25-1 provides the requirements of recording the transaction by applying the acquisition method. The acquisition method requires the Company to determine if the assets and liabilities acquired are a business or not. Under ASC 805-10-25-1, it must be determined if there is a specific acquisition party, acquisition date, identifiable assets acquired and liabilities assumed and you must be able to recognized and measure goodwill or a gain from the purchase. Based upon this guidance, the acquisition had been recorded as a business combination.

The net assets acquired and consideration is as follow:

Leasehold Improvements	$	550
Diagnostic Equipment		100
Customer Lists		100
Covenant Not to Compete		50
Security Deposit		39
Closing costs – expensed		3
Goodwill		284
Cash Consideration Paid	$	1,126

The results of operations of Rockland Management Group were diminutive and did not affect the pro forma results of operations.