On March 9, 2017, the Company, through a newly created special purpose entity, executed a share purchase agreement to acquire all outstanding ownership interests in Crescent Construction Company, Inc.. a full service general contracting firm for total consideration of $1,800,000. The agreement requires a cash payment of $500,000 at closing plus a note payable for $1,300,000. The note carries interest of 6%, matures on March 31, 2022 and requires equal quarterly payments of $152,693.
As part of the transaction, the Company entered into a revolving credit facility to borrow up to $5,000,000 of which $1,5000,000 as advanced to the company upon closing. Of the $1,500,000 advanced to the Company, $631,855 was paid for the seller and financier’s closing costs resulting in net cash to the Company of $868,145. The credit line carries an interest rate of 12% per annum and requires repayment based on cash collected from clients which are required to be sent to a lockbox maintained by the financier of which the net receipts after required payments to the financier under the credit facility agreement will be provided to the Company.
Item 14. Principal Accounting Fees and Services.
The following presents aggregate fees for professional services rendered by our independent registered public accounting firm, Anton & Chia LLP (for the year ended December 31, 2015) and Sadler Gibb and Associates, LLC, for the audit of our annual consolidated financial statements during the year ended December 31, 2014.
Audit Fees
For the Company’s fiscal years ended December 31, 2015 (Anton & Chia LLP) and 2014, we were billed approximately $60,000 and $47,000 (Sadler Gibb & Associates) for professional services rendered for the audit and review of our financial statements
