Note 3. Acquisitions

On March 1, 2021, the Company completed the acquisition of Red Barn Real Estate, LLC ("Red Barn") deemed immaterial to the Company. The Red Barn acquisition was accounted for as a business combination using the purchase method of accounting.

On March 1, 2021 the Company acquired substantially all of the assets of Naberly, Inc. ("Naberly") for cash consideration of $2,665,000.  Based on the Company’s preliminary estimation of the fair value of the assets acquired, the Naberly acquisition was accounted for as an asset acquisition. The total acquisition cost, including transaction costs of approximately $95,000, was $2,760,000 and was recorded as software intangible assets.

During the year ended December 31, 2020, in connection with, and in advance of the closing under the asset purchase agreement to acquire the assets of Naberly, the Company issued to Naberly, an unsecured loan (the "Loan") in the principal amount of up to $165,000 with an interest rate of two percent (2%) per annum, compounded annually, and a maturity date of February 28, 2021. As of March 31, 2021, the outstanding principal balance of the Loan was forgiven in connection with the closing of the acquisition, and was accounted for as part of the purchase consideration transferred to Naberly.