v3.23.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Schedule of financial assets and liabilities measured at fair value on recurring basis

Fair Value Measurements

as of December 31, 2022 Using:

    

Level 1

    

Level 2

    

Level 3

    

Total

Liabilities:

Warrant liability

$

$

$

$

Contingent consideration

 

 

 

12,098,475

 

12,098,475

Derivative liability

$

$

$

12,098,475

$

12,098,475

Fair Value Measurements

as of December 31, 2021 Using:

    

Level 1

    

Level 2

    

Level 3

    

Total

Liabilities:

Warrant liability

$

$

18,223

$

$

18,223

Contingent consideration

12,179,476

12,179,476

Derivative liability

2,294,720

2,294,720

$

$

18,223

$

14,474,196

$

14,492,419

Schedule of changes in acquisition-related contingent consideration

    

Contingent

Consideration

Liability

Balance as of December 31, 2020

$

Initial recognition in connection with acquisition of Harper & Jones

 

3,421,516

Stock price guarantee per consulting agreement

 

67,000

Conversion into shares

(73,500)

Change in fair value

 

8,764,460

Outstanding as of December 31, 2021

12,179,476

Repayments to Harper & Jones seller

(645,304)

Change in fair value

564,303

Outstanding as of December 31, 2022

$

12,098,475

Schedule of changes in derivative liability

Derivative

    

Liability

Outstanding as of December 31, 2020

$

Initial fair value on issuance of convertible note

 

3,204,924

Change in fair value

 

(910,204)

Outstanding as of December 31, 2021

2,294,720

Initial fair value on issuance of convertible note

559,957

Conversion of underlying notes into common stock

(1,500,243)

Change in fair value

(1,354,434)

Outstanding as of December 31, 2022

$

Schedule of inventory

December 31, 

    

2022

    

2021

Raw materials

    

$

1,611,134

    

$

292,167

Work in process

 

888,643

 

242,673

Finished goods

 

2,725,505

 

2,220,519

Inventory

$

5,225,282

$

2,755,358

Schedule of potentially dilutive items outstanding

    

December 31, 

2022

    

2021

Convertible notes

947,867

47,912

Series A convertible preferred stock

 

108,000

 

Common stock warrants

 

4,418,320

 

35,801

Stock options

 

38,951

 

38,951

Total potentially dilutive shares

 

5,513,138

 

122,664

Schedule of estimated useful lives of amortizable intangible assets

Customer relationships

    

3 years

Schedule of changes in common stock warrant liability

    

Warrant

Liability

Outstanding as of December 31, 2020

$

6,265

Change in fair value

 

11,958

Outstanding as of December 31, 2021

18,223

Change in fair value

(18,223)

Outstanding as of December 31, 2022

$

Summary of goodwill and intangible impairment

Year Ended

December 31,

    

2022

    

2021

Bailey brand name

    

$

2,182,000

    

$

3,400,000

Harper & Jones brand name

 

1,485,000

 

Total impairment of intangibles

 

3,667,000

 

3,400,000

Bailey goodwill

 

3,321,095

 

Harper & Jones goodwill

 

8,551,237

 

Total impairment of goodwill

 

11,872,332

 

Total impairment

$

15,539,332

$

3,400,000

Summary of contingent consideration

    

December 31,

    

2022

    

2021

Bailey

$

10,698,475

 

7,935,016

Harper & Jones

 

1,400,000

 

4,244,460

$

12,098,475

$

12,179,476