6. Business Acquisitions On March 2, 2020, the Company entered into a stock purchase agreement to acquire all of the issued and outstanding stock of Graphic Sciences. The acquisition was accounted for in accordance with GAAP and was made to expand the Companys market share in the document management industry and due to synergies of product lines and services between the Companies. On April 21, 2020, the Company entered into an asset purchase agreement to acquire substantially all of the assets of CEO Image. The acquisition was accounted for in accordance with GAAP and was made to expand the Companys market share in the document management industry and due to synergies of product lines and services between the Companies. The purchase price has been preliminarily allocated to assets acquired and liabilities assumed based on the estimated fair value of such assets and liabilities at the date of acquisitions as follows: Total March 2, 2020 April 21, 2020 Assets acquired: Cash $ 17,269 $ 17,269 $ - Accounts receivable 1,122,737 1,071,770 50,967 Accounts receivable, unbilled 276,023 276,023 - Parts and supplies 91,396 91,396 - Prepaid expenses 73,116 73,116 - Other current assets 5,954 5,954 - Right of use assets 2,885,618 2,885,618 - Property and equipment 735,885 732,372 3,513 Intangible assets (see Note 7) 1,361,000 1,230,000 131,000 6,568,998 6,383,518 185,480 Liabilities assumed: Accounts payable 168,749 129,622 39,127 Accrued expenses 162,426 155,949 6,477 Lease liabilities 2,947,684 2,947,684 - Federal and state taxes payable 168,900 168,900 - Deferred revenue 198,659 39,186 159,473 Deferred tax liabilities - Net 149,900 149,900 - 3,796,318 3,591,241 205,077 Total identifiable net assets/(liabilities) 2,772,680 2,792,277 (19,597 ) Purchase price 5,095,567 4,592,453 503,114 Goodwill - Excess of purchase price over fair value of net assets acquired $ 2,322,887 $ 1,800,176 $ 522,711 The purchase price of Graphic Sciences was financed with a $686,200 seller earnout liability and $3,906,253 was paid in cash. Goodwill in the amount of $1,800,176 was recognized in the acquisition of Graphic Sciences and is attributable to the cash flows of the business derived from the potential of the Company to outperform the market due to its existing relationship and other synergies created within the Company. The purchase price of CEO Image was partially financed with a $203,000 seller earnout liability and $170,000 in installment payments. $128,832 was paid in cash at the closing. On August 3, 2020, $1,282 was paid for a net working capital adjustment and $70,000 was paid, along with accrued interest, in installment payments. The remaining Seller note of $100,000 is included in notes payable  current. Goodwill in the amount of $522,711 was recognized in the acquisition of CEO Image and is attributable to the cash flows of the business derived from the potential of the Company to outperform the market due to its existing relationship and other synergies created within the Company. Acquisition costs which include legal and other professional fees of approximately $636,440 were expensed as nonrecurring transaction costs and are included in Significant transaction costs in the accompanying condensed consolidated statement of operations. The earnout arrangement for Graphic Sciences requires the Company to pay the seller up to $833,000 annually for a three year period based on a gross profit level achieved by Graphic Sciences on an annual basis, resulting in a max payout to the seller over a three year period of $2,500,000, as defined. Management estimated a fair value of the earnout liability of $686,200 which would be owed to the seller based on the terms of the earnout, and accordingly, recorded this liability at the acquisition date in accordance with GAAP. The fair value was based on projections of future gross profit over a three year period and valuation techniques that utilized expected volatility, threshold probability, and discounting of future payments. The earnout arrangement for CEO Image requires the Company to pay the seller up to $185,000 annually for a two year period based on a sales revenue level achieved by certain customers of CEO Image on an annual basis, resulting in a max payout to the seller over a two year period of $370,000, as defined. Management estimated a fair value of the earnout of $203,000 which would be owed to the seller based on the terms of the earnout, and accordingly, recorded this liability at the acquisition date in accordance with GAAP. The fair value was based on projections of future revenue over a two year period and valuation techniques that utilized expected volatility, threshold probability, and discounting of future payments. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded. The finalization of the purchase accounting assessment may result in changes in the valuation of assets acquired and liabilities assumed and may have an impact on the Companys results of operations and financial position. The following unaudited pro forma information presents a summary of the consolidated results of operations for the Company as if the acquisitions of Graphic Sciences and CEO Image had occurred on January 1, 2019. For the Three months ended (unaudited) (unaudited) September 30, 2020 September 30, 2019 Total revenues $ 2,511,282 $ 2,931,250 Net income (loss) $ 155,673 $ (324,174 ) Basic and diluted net income (loss) per share $ 0.06 $ (0.12 ) For the Nine months ended (unaudited) (unaudited) September 30, 2020 September 30, 2019 Total revenues $ 6,990,549 $ 7,716,421 Net loss $ (566,082 ) $ (1,031,326 ) Basic and diluted net loss per share $ (0.20 ) $ (0.37 ) The unaudited pro forma consolidated results are based on the Companys historical financial statements and those of Graphic Sciences and CEO Image and do not necessarily indicate the results of operations that would have resulted had the acquisition actually been completed at the beginning of the applicable period presented. The pro forma financial information assumes that the companies were combined as of January 1, 2019. The following table presents the amounts of revenue and earnings of the acquirees since the acquisition date included in the condensed consolidated income statement for the reporting period. For the three months ended September 30, 2020 Graphic Sciences CEO Image Total revenues $ 1,660,775 $ 155,414 Net income $ 239,555 $ (a) For the nine months ended September 30, 2020 Graphic Sciences CEO Image Total revenues $ 3,409,193 $ 219,934 Net income $ 380,881 $ (a) (a) Total earnings from the CEO Image acquisition is impracticable to disclose as the operations were merged with existing operations and not accounted for separately.