Sugarmade Inc (SGMD)

[x100xPercent]

Correct me if I'm wrong - I'm very new to growth by acquisitions. Once SGMD acquires a company, they are allowed to recognize all the revenue from that company as their own. The two companies become one. So isn't all the money that SGMD is paying Bizright really just paying themselves? I don't understand where the line is drawn between the two companies once an acquisition is complete.

My guess is that it's all about the share value so in the future at a very high stock price everyone wins. But how is Jimmy Chan and all employees at SGMD going to make their salaries without selling their personal shares? Does all the money the acquired companies make still belong to themselves?