| NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1.
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature
of Business Unique
Logistics International, Inc. and its subsidiaries (the “Company” or “Unique”) is a non-asset-based provider
of global logistics and freight forwarding services operating through a worldwide network of offices and exclusive or non-exclusive agents.
The Company’s customers include retailing and wholesaling, electronics, high technology, industrial and manufacturing companies
around the world. The Company provides a range of international logistics services that enable its customers to outsource sections of
their supply chain process. This range of services can be categorized as follows:
● Air
Freight
● Ocean
Freight
● Customs
Brokerage and Compliance
● Warehousing
and Distribution
● Order
Management Basis
of Presentation These
consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America
(“GAAP”) and include all accounts of the Company and its subsidiaries stated in U.S. dollars, the Company’s functional
currency. For subsidiaries operating outside the U.S., the financial information will be accounted for on a one-month lag. Substantially
all unremitted earnings of international subsidiaries are free of legal and contractual restrictions. All intercompany transactions and
balances have been eliminated in the consolidated financial statements. Liquidity The
accompanying consolidated financial statements have been prepared on a going concern basis. Substantial doubt about an entity’s
ability to continue as a going concern exists when conditions and events, considered in the aggregate, indicate that it is probable that
the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are
issued. As
of May 31, 2024, the Company reported positive net working capital of $ 4.1 7.9 7.1 8.2 4.4 13.0 The
Company maintains its operating line of credit with TBK Bank, SSB, under which TBK Bank will, from time to time, increase the
Company’s credit limit on demand. Credit limit as of May 31, 2024, was set at $ 25.0 25.0 30.0 While
the Company continues to execute its strategic plan and grow its customer base, management is focused on
managing cash and monitoring the Company’s liquidity position. We have implemented several initiatives to conserve our
liquidity position, including increasing credit facilities, when needed, reducing the cost of debt by obtaining
more favorable financing, controlling general and administrative expenditures, and improving our cash collection processes. Many aspects of the liquidity plan involve management’s judgments and estimates that include factors that could be beyond our
control and actual results could differ from our estimates. These and other factors could cause the strategic plan to be
unsuccessful, which could have a material adverse effect on our operating results, financial condition, and liquidity. Negative
operating capital may be an indicator that there could be a going concern issue, but based on its evaluation of the Company’s
projected cash flows and business performance as of and subsequent to May 31, 2024, management has concluded that the
Company’s current cash and cash availability under the TBK Facility as of May 31, 2024, would be sufficient to fund its
planned operations and alleviates substantial doubt about the Company’s ability to continue as a going concern for at least
one year from the date the consolidated financial statements were issued. Acquisitions These
consolidated financial statements include the operations of acquired businesses from the date of the acquisitions. On February 21, 2023,
the Company completed the acquisition of share capital in eight operating subsidiaries from Unique Logistics Holdings Limited, a Hong
Kong corporation (see Note 2). The decision of whether to consolidate an entity for financial reporting purposes requires consideration
of majority voting interests, as well as effective economic or other control over the entity. We
account for acquired businesses that we control using the acquisition method of accounting, which requires, among other things, that
most assets acquired, and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Transaction costs
are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded
as goodwill. Contingent
consideration in a business combination is included as part of the contingent liability and is recognized at fair value as of the acquisition
date. Fair value is generally estimated by using a probability-weighted discounted cash flow approach. Any liability resulting from contingent
consideration is remeasured to fair value at each reporting date until the contingency is resolved. These changes in fair value are recognized
in earnings. For
equity-method investments in share capital of the subsidiaries where share interest acquired is less than 50%, but we have significant
influence over the financial and operating policies of the investee, we use the equity method of accounting. Under the equity method,
we record our share of the investee’s income and expenses in income from operation and any share of the earnings and loss would
be recorded against investment reduced by cash dividends received. The initial excess of the cost of the investment over our share of
the underlying equity in the net assets of the investee as of the acquisition date is allocated to the identifiable assets and liabilities
of the investee, with any remaining excess amount allocated to goodwill. Such investments are initially recorded at cost, which is the
fair value of consideration paid and typically does not include contingent consideration. For equity-method investments, an impairment
charge is recorded only if and when a decline in fair value is determined to be other than temporary. Use
of Estimates The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Significant
estimates inherent in the preparation of the consolidated financial statements include determinations of the useful lives and expected
future cash flows of long-lived assets, including intangibles, valuation of assets and liabilities acquired in business combinations,
and estimates and assumptions in valuation of debt and equity instruments, including derivative liabilities. In addition, the Company
makes significant judgments to recognize revenue – see policy note “ Revenue Recognition Revenue
Recognition The
Company adopted ASC 606, Revenue from Contracts with Customers To
determine revenue recognition, the Company applies the following five steps:
1. Identify
the contract(s) with a customer;
2. Identify
the performance obligations in the contract;
3. Determine
the transaction price;
4. Allocate
the transaction price to the performance obligations in the contract; and
5. Recognize
revenue as or when the performance obligation is satisfied. Revenue
is recognized as follows:
i. Freight
income - export sales
Freight
income from the provision of air, ocean, and land freight forwarding services are recognized over time based on a relative transit
time basis through the sail or departure from origin port. The Company is the principal in these transactions and recognizes revenue
on a gross basis.
ii. Freight
income - import sales
Freight
income from the provision of air, ocean, and land freight forwarding services are recognized over time based on a relative transit
time basis through the delivery to the customer’s designated location. The Company is the principal in these transactions and
recognizes revenue on a gross basis.
iii. Customs
brokerage and other service income
Customs
brokerage and other service income from the provision of other services are recognized at the point in time the performance obligation
is met. The
Company’s business practices require, for accurate and meaningful disclosure, that it recognizes revenue over time. The “over
time” policy is the period from point of origin to arrival of the shipment at the Port of entry (or in the case when the customer
requires delivery to a designated point, the arrival at that delivery point). This overtime policy requires the Company to make significant
judgements to recognize revenue over the estimated duration of time from port of origin to arrival at port of entry. The point in the
process when the Company meets its obligation in the port of entry and the subsequent transfer of the goods to the customer is when the
customer has the obligation to pay, has taken physical possession, has legal title, risk and awards (ownership) and has accepted the
goods. The Company has elected to not disclose the aggregate amount of the transaction price allocated to performance obligations that
are unsatisfied as of the end of the period as the Company’s contracts with its customers have an expected duration of one year
or less. The
Company uses independent contractors and third-party carriers in the performance of its transportation services. The Company evaluates
who controls the transportation services to determine whether its performance obligation is to transfer services to the customer or to
arrange for services to be provided by another party. The Company determined it acts as the principal for its transportation services
performance obligation since it is in control of establishing the prices for the specified services, managing all aspects of the shipments
process and assuming the risk of loss for delivery and collection. Revenue
billed prior to realization is recorded as contract liabilities on the consolidated balance sheets and contract costs incurred prior
to revenue recognition are recorded as contract assets on the consolidated balance sheets. Contract
Assets Contract
assets represent amounts for which the Company has the right to consider for the services provided while a shipment is still in-transit
but for which it has not yet completed the performance obligation and has not yet invoiced the customer. Upon completion of the performance
obligations, which can vary in duration based upon the method of transport and billing the customer, these amounts become classified
within accounts receivable. Contract
Liabilities Contract
liabilities represent the amount of obligation to transfer goods or services to a customer for which consideration has been received. Significant
Changes in Contract Asset and Contract Liability Balances for the year ended May 31, 2024: SCHEDULE OF CHANGES IN CONTRACT ASSET AND CONTRACT LIABILITY
Contract Contract
Assets Liabilities
Increase (Increase)
(Decrease) Decrease
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligation satisfied $ - $ -
Cash Received in advance and not recognized as revenue - -
Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional (5,519,194 ) -
Current year contract assets recognized, net reclassification to receivables 6,593,614 -
Net change $ 1,074,420 $ - Significant
Changes in Contract Asset and Contract Liability Balances for the year ended May 31, 2023:
Contract Assets Increase Contract Liabilities (Increase)
Reclassification
of the beginning contract liabilities to revenue, as the result of performance obligation satisfied $ - $ 468,209
Cash
Received in advance and not recognized as revenue - -
Reclassification
of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional (41,471,463 ) -
Prior
year contract assets recognized, net reclassification to receivables 13,387,660 -
Net
change $ (28,083,802 ) $ 468,209 Disaggregation
of Revenue from Contracts with Customers The
following table disaggregates gross revenue from our clients by significant geographic area for the year ended May 31, 2024, and 2023,
based on origin of shipment (imports) or destination of shipment (exports): SCHEDULE OF DISAGGREGATION OF REVENUE
For the For the
Year Ended Year Ended
May 31, 2024 May 31, 2023
China, Hong Kong & Taiwan $ 66,466,301 $ 138,554,312
Southeast Asia 47,099,092 80,967,866
United States 65,781,183 42,463,526
India Sub-continent 43,867,609 45,877,123
Other 39,305,240 17,755,665
Total revenue $ 262,519,424 $ 325,618,492 Cash
and Cash Equivalents The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. Foreign
Currency For
most of our international operations conducted by the subsidiaries operating outside the U.S, local currencies have been determined to
be functional currencies. We translate functional currency assets and liabilities to their U.S. dollar equivalents at exchange rates
in effect as of the balance sheet date and income and expense amounts at average exchange rates for the period. The U.S. dollar affects
that arise from changing translation rates are recorded in Other comprehensive income/(loss). Transaction
gains or losses result from a change in exchange rates between the functional currency and the currency in which a foreign currency transaction
is denominated. We aggregate all transaction gains and losses and classify the net amount in a single caption in the income statement
in operating income as foreign exchange transactions, net. Accounts
Receivable Accounts
receivable from revenue transactions are based on invoiced prices which the Company expects to collect. In the normal course of business,
the Company extends credit to customers that satisfy pre-defined credit criteria. The Company generally does not require collateral to
support customer receivables. Accounts receivable, as shown on the consolidated balance sheets, is net of allowances when applicable. Management
estimates that allowance for credit losses based on ongoing review of existing economic conditions, the financial conditions of the customers,
historical trends in credit losses, and the amount and age of past due accounts. The Company’s trade accounts receivable present
similar credit risk characteristics and the allowance for credit loss is estimated on a collective basis, using a credit loss-rate method
that uses historical credit loss information and considers the current economic environment. As of May 31, 2024, and May 31, 2023 the
Company recorded an allowance for credit losses of approximately $ 0.5 1.7 Concentrations Revenue
from three major customers in the aggregate as a percentage of the Company’s total revenue was 25.0 %
for the year ended May 31, 2024, with only one customer at 11 %. Revenue
from three major customers in the aggregate as a percentage of the Company’s total revenue was 19.0 10.0 Property
and Equipment Property
and equipment are stated at cost less accumulated depreciation and impairment losses. Depreciation is provided for by the straight-line
method over the estimated useful lives of the related assets. Estimated
useful lives of property and equipment are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT
Software 3
Computer
equipment 3 5
Furniture
and fixtures 5 7
Leasehold
improvements Shorter
of estimated useful life or remaining term of the lease Both
the useful life of an asset and its residual value, if any, are reviewed annually. Expenditures
for repairs and maintenance are charged to expense as incurred. For assets sold or otherwise disposed of, the cost and related accumulated
depreciation are removed from the accounts, and any related gain or loss is reflected in income for the period. The Company did not record
any impairment for the year ended May 21, 2024 or May 31, 2023. Goodwill
and Other Intangibles The
Company accounts for business acquisitions in accordance with GAAP. Goodwill in such acquisitions is determined as the excess of fair
value over amounts attributable to specific tangible and intangible assets. GAAP specifies criteria to be used in determining whether
intangible assets acquired in a business combination must be recognized and reported separately from goodwill. Amounts assigned to goodwill
and other identifiable intangible assets are based on independent appraisals or internal estimates. In
accordance with GAAP, the Company does not amortize goodwill or indefinite-lived intangible assets. Management evaluates the remaining
useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue
to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite
useful life, it is amortized prospectively over its estimated remaining useful life. Amortizable intangible assets, including tradenames
and non-compete agreements, are amortized on a straight-line basis over 3 10 12 15 The
Company tests goodwill for impairment annually as of May 31 or if an event occurs or circumstances change that indicate that the fair
value of the entity, or the reporting unit, may be below its carrying amount (a “triggering event”). Whenever events or circumstances
change, entities have the option to first make a qualitative evaluation about the likelihood of goodwill impairment. If impairment is
deemed more likely than not, management would perform the two-step goodwill impairment test. Otherwise, the two-step impairment test
is not required. In assessing the qualitative factors, the Company assessed relevant events and circumstances that may impact the fair
value and the carrying amount of the reporting unit. The identification of the relevant events and circumstances and how these may impact
a reporting unit’s fair value or carrying amount involve significant judgements and assumptions. The judgement and assumptions
include the identification of macroeconomic conditions, industry and market considerations, overall financial performance, Company specific
events and share price trends, an assessment of whether each relevant factor will impact the impairment test positively or negatively,
and the magnitude of such impact. If
a quantitative assessment is performed, a reporting unit’s fair value is compared to its carrying value. A reporting unit’s
fair value is determined based upon consideration of various valuation methodologies, including the income approach, which utilizes projected
future cash flows discounted at rates commensurate with the risks involved and multiples of current and future earnings. If the fair
value of a reporting unit is less than its carrying amount, an impairment charge is recognized for the amount by which the carrying amount
exceeds the reporting unit’s fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that
reporting unit. We
test goodwill for impairment annually in the fiscal fourth quarter or whenever events or circumstances indicate the carrying value may
not be recoverable. For the years ended May 31, 2024 and 2023 the Company conducted its annual review of impairment of goodwill and intangible
assets and no impairment was identified. Impairment
of Long-Lived Assets Long-lived
assets are comprised of intangible assets and property and equipment. Long-lived assets are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An estimate of undiscounted
future cash flows produced by the asset, or the appropriate grouping of assets, is compared to the carrying value to determine
whether an impairment exists, pursuant to the provisions of the Financial Accounting Standards Board (“FASB”) ASC 360-10 “Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of”. Fair
Value Measurement The
Company follows the authoritative guidance that establishes a formal framework for measuring fair values of assets and liabilities in
the consolidated financial statements that are already required by generally accepted accounting principles to be measured at fair value.
The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date (exit price). The transaction is based on a hypothetical transaction in the principal
or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The
Company utilizes market data or assumptions that market participants who are independent, knowledgeable, and willing and able to transact
would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique.
These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques
that maximize the use of observable inputs and minimize the use of unobservable inputs. The
Company is able to classify fair value balances based on the observability of those inputs. The guidance establishes a formal fair value
hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level 1 measurements and the lowest
priority to level 3 measurements, and accordingly, Level 1 measurement should be used whenever possible. The
hierarchy is broken down into three levels based on the reliability of inputs as follows: Level
1 – Quoted prices in active markets for identical assets or liabilities or published net asset value for alternative investments
with characteristics similar to a mutual fund. Level
2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly. Level
3 – Unobservable inputs for the asset or liability. The
methods used may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.
Furthermore, while management believes its valuation methods are appropriate, the fair value of certain financial instruments could result
in a difference fair value measurement at the reporting date. There were no changes in the Company’s valuation methodologies from
the prior year. For
purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced sale or liquidation. The carrying amounts for financial assets and liabilities
such as cash and cash equivalents, accounts receivable - trade, contract assets, factoring reserve, other prepaid expenses and current
assets, accounts payable – trade and other current liabilities, including contract liabilities, convertible notes, promissory notes,
all approximate fair value due to their short-term nature as of May 31, 2024, and May 31, 2023. The carrying amount of the long-term
debt approximates fair value because the interest rates on these instruments approximate the interest rate on debt with similar terms
available to the Company. Lease liabilities approximate fair value based on the incremental borrowing rate used to discount future cash
flows. The Company had Level 3 liabilities, (Derivative liabilities Note) as of May 31, 2024 and May 31, 2023. There were no transfers
between levels during the reporting period. Derivative
Liability SCHEDULE OF DERIVATIVE LIABILITIES
Level 1 Level 2 Level 3
Derivative liabilities as June 1, 2022 $ - $ - $ 12,437,994
Addition - - -
Changes in fair value - - (879,733 )
Derivative liabilities as May 31, 2023 $ - $ - $ 11,558,261
Derivative liabilities, beginning balance $ - $ - $ 11,558,261
Addition - - -
Change in fair value - - (5,889,261 )
Derivative liabilities as May 31, 2024 $ - $ - $ 5,669,000
Derivative liabilities, ending balance $ - $ - $ 5,669,000 Convertible
Preferred Stock Convertible
Preferred Stock Series A, C and D feature an anti-dilution provision that expires on a specified date. Management has determined the
anti-dilution provision embedded in preferred stock Series A, C and D is required to be accounted for separately from the preferred
stock as a derivative liability and recorded at fair value. Separation of the anti-dilution option as a derivative liability is
required because its economic characteristics are considered more akin to a debt instrument and therefore the anti-dilution option
is not considered to be clearly and closely related to the economic characteristics of the preferred stock. The
Company has identified and recorded derivative instruments arising from an anti-dilution provision. An embedded derivative liability
is representing the rights of holders of Convertible Preferred Stock Series A, C and D to receive additional common stock of the Company
upon issuance of any additional common stock by the Company prior to qualified financing event as defined in the agreement. Each reporting
period, the embedded derivative liability, if material, would be adjusted to reflect fair value at each period end with changes in fair
value recorded in the “Change in fair value of embedded derivative liability” financial statement line item of the company’s
statements of operations. The
underlying value of the anti-dilution provision is calculated from estimating the probability and value of the provision assuming a near
term financing event. For the year ended May 31, 2024, based on the assumption of how antidilutive shares of Convertible Preferred Series
A, C and D would be exchanged in the near future for common stock, and the fact that the antidilution provision of these shares is effective
through December 31, 2024, the assumptions include probability of the financing event, estimated value of common stock at the exchange
point and estimated time to financing event. The
key inputs into the model were as follows: SCHEDULE OF FAIR VALUE ASSUMPTION
May 31, 2024 May 31, 2023
Risk-free interest rate 4.96 % 5.5 %
Probability of financing event or capital raise 50 % 90 %
Estimated capital raise 22.5 39.0
Estimated equity value or common stock $ 73.6 10.00
Estimated time to financing event 1.75 0.42 Income
Taxes Income
taxes are accounted for under the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are
recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases, the tax effect of loss carry forwards and tax credit carry forwards. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets
to amounts expected to be realized. The
Company uses a two-step approach to recognizing and measuring uncertain income tax positions (tax contingencies). The first step is to
evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not the
position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the
tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company considers many
factors when evaluating its tax positions and estimating our tax benefits, which may require periodic adjustments, and which may not
match the ultimate future outcome. Earnings
per Share Basic
Earnings Per Share (“EPS”) is computed by dividing income available to common stockholders (the numerator) by the weighted-average
number of common shares outstanding, including warrants exercisable for less than a penny, (the denominator) during the period. Income
available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether
or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from net income. The
computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number
of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period
to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, preferred
stock, stock options or warrants. The
following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income per common share. SCHEDULE OF EARNING PER SHARE
May 31, 2024 May 31, 2023
For the Year Ended
May 31, 2024 May 31, 2023
Numerator:
Net income $ (7,113,203 ) $ 8,214,568
Effect of dilutive securities: - -
Diluted net income $ (7,113,203 ) $ 8,214,568
Denominator:
Weighted average common shares outstanding – basic 799,141,770 785,412,500
Dilutive securities: *
Series A Preferred * - 1,168,177,320
Series B Preferred * - 5,373,342,576
Series C Preferred * - 1,206,351,359
Series D Preferred * - 1,130,954,399
Weighted average common shares outstanding and assumed conversion – diluted 799,141,770 9,664,238,154
Basic net income per common share $ (0.01 ) $ 0.01
Diluted net income per common share $ (0.01 ) $ -
* Due to a net loss
for the year ended May 31, 2024, only weighted average common shares are used in calculations. The Company’s dilution of all outstanding
securities would be as follows: SCHEDULE OF ANTI-DILUTIVE SHARES
May 31, 2024
Weighted average common shares outstanding – basic 799,141,770
Series A Preferred 1,168,177,320
Series B Preferred 5,373,342,576
Series C Preferred 1,206,351,359
Series D Preferred 1,130,954,399
Weighted average common shares outstanding and assumed conversion – diluted 9,677,967,425 Leases The
Company recognizes a right of use (“ROU”) asset and liability in the consolidated balance sheet primarily related to its
operating leases of office space, warehouse space and equipment. Right-of-use assets represent the Company’s right to use an underlying
asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.
All ROU assets and lease liabilities are recognized at the commencement date at the present value of lease payments over the lease term.
ROU assets are adjusted for lease incentives and initial direct costs. The lease term includes renewal options exercised at the Company’s
sole discretion when the Company is reasonably certain to exercise that option. As the Company’s leases generally do not have an
implicit rate, the Company uses an estimated incremental borrowing rate based on borrowing rates available to them at the commencement
date to determine the present value. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances
after the start of the lease. The Company excludes variable payments from ROU assets and lease liabilities to the extent not considered
fixed, and instead expenses variable payments as incurred. Lease expense is recognized on a straight-line basis over the lease term and
is included in rent and occupancy expenses in the consolidated statements of operations. Segment
Reporting Based
on the guidance provided by ASC Topic 280, Segment Reporting Stock-Based
Compensation The
Company accounts for stock-based compensation in accordance with ASC Topic 718, “ Compensation – Stock Compensation”
“ASC 718” The
Company recognizes all forms of share-based payments, including stock option grants, warrants and restricted stock grants, at their fair
value on the grant date, which are based on the estimated number of awards that are ultimately expected to vest. Share-based
payments, excluding restricted stock, are valued using a Black-Scholes option pricing model. Grants of share-based |
