Note 3  BUSINESS COMBINATIONS a) Acquisition of NiSun BVI Based on the shareholders' approval on June 14, 2019, the Group completed the acquisition of 100% of the equity interests of NiSun BVI on July 12, 2019 (the "closing date") . By virtue of NiSun BVI's 100% ownership of NiSun HK, NiSun HK's ownership of NingChen and NingChen's contractual control over Fintech, NiSun BVI effectively controls Fintech, a company that provides financial services to financial institutions in the PRC. The Group believes the acquisition provides an opportunity for the Group to offer comprehensive financial services in the market with significant growth potential. The Group's acquisition of NiSun BVI was accounted for as a business combination in accordance with ASC 805. The purchase price was $ 7 million in cash, which is expected to be paid by the Group within 12 months (Note 19). Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Group: Amount Cash acquired $ 661,070 Prepayments and deposits 45,605 Property and equipment 15,520 Intangible assets  technology and customer relationships 2,387,970 Customer advances (29,070 ) Accrued expenses and other current liabilities assumed (118,520 ) Deferred tax liability (559,626 ) Goodwill 4,597,051 Total consideration $ 7,000,000 The goodwill is mainly attributable to the excess of the consideration paid over the fair value of the net assets acquired that cannot be recognized separately as identifiable assets, and comprise (a) the assembled work force with their knowledge and experiences in the industry and (b) the expected but unidentifiable business growth potential as a result of the synergy resulting from the acquisition. None of the goodwill is expected to be deductible for income tax purposes. The operating results of NiSun BVI have been included in the consolidated financial statements since July 12, 2019. For the year ended December 31, 2019, NiSun BVI's revenue amounted to $2,525,524 and its net income was $1,469,306. b) Acquisition of Hengpu On December 31, 2019, the Group acquired Hengpu from its original shareholders through VIE agreements. Hengpu owns a 92% equity interest in Fengtai and 100% equity interest of Midtown. Upon completion of the acquisition, Hengpu, together with its subsidiaries, became a VIE of the Group. Hengpu and its subsidiaries provide financial advisory services for financial institutions and corporate clients in the PRC. The Group expects to achieve significant synergies from such acquisition which it plans will complement its financial services business. The Group's acquisition of Hengpu was accounted for as business combination in accordance with ASC 805. The Group is required to issue 1,440,894 Class A common shares to the original shareholders of Hengpu as purchase consideration. The fair value of purchase consideration was approximately $11.4 million based on the weighted average of the closing share price of the Group for five trading days up to the date immediately prior to the signing date of purchase agreement. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Group: Amount Cash and cash equivalents acquired $ 1,389,911 Accounts receivable 423,789 Prepayments and deposits 126,832 Loan to third party 1,723,692 Property and equipment 42,359 Intangible assets  software, technology and customer relationships 2,060,530 Long term investment  equity method investment 500,715 Deferred tax assets 20,041 Accounts payable (224,044 ) Accrued expense and other current liabilities assumed (871,325 ) Deferred tax liability (308,110 ) Non controlling interest 9,807 Goodwill 6,532,092 Total consideration $ 11,426,289 The goodwill is mainly attributable to the excess of the consideration paid over the fair value of the net assets acquired that cannot be recognized separately as identifiable assets, and comprise (a) the assembled work force with their knowledge and experiences in the industry and (b) the expected but unidentifiable business growth potential as a result of the synergy resulting from the acquisition. None of the goodwill is expected to be deductible for income tax purposes. The remaining Class A common shares issuable to the original shareholders of Hengpu amount to 1,440,894 as of December 31, 2019.