|9 Months Ended|
Sep. 30, 2017
|Business Combinations [Abstract]|
NOTE 4 – ACQUISITION
In May 2014, the Company’s wholly-owned subsidiary, MariMed Advisors Inc. (“MMA”), acquired Sigal Consulting LLC (“Sigal”), a company partially owned by the CEO and CFO of the Company. The purchase price, which was distributed to the owners of Sigal, consisted of (i) 31,954,236 shares of the Company’s common stock, (ii) options to purchase three million shares of the Company’s common stock at prices ranging from $0.15 - $0.35 per share and which vest over two years and exercisable over five years, and (iii) a 49% interest in MMA.
The value of the common stock issued was approximately $5,912,000, as determined by the fair value of the Company’s common stock on the closing date. The fair value of the stock options was approximately $570,000, as measured by the use of an option pricing model.
The fair value of common stock issued and options granted for acquisition over the book value of Sigal was recorded as goodwill, which was subsequently impaired in full.
In June, the Company issued 75 million shares of common stock to purchase the remaining 49% ownership of MMA.
The entire description for costs incurred to effect a business combination that have been expensed during the period. Such costs could include business integration costs, systems integration and conversion costs, and severance and other employee-related costs.
Reference 1: http://www.xbrl.org/2003/role/presentationRef