Earth Science Tech, Inc. (ticker: UNOV) recently reported a notable increase in notes payable, along with the acquisition of RxCompoundStore.com, LLC (“RxCompound”) and Peaks Curative, LLC (“Peaks”). According to the company’s SEC report, these changes contribute to the growth and stability of Earth Science Tech, Inc.
As of March 31, 2023, the Company’s notes payable and loans payable consisted of an SBA Loan of $209,175, a Revolving Promissory Note of $250,000, and a Convertible Promissory Note of $350,000. This adds up to a total of $926,368, with $635,590 being classified as current maturities and $290,778 as long-term maturities. The previous year (March 31, 2022) had a total of $570,113, showing a considerable increase in their loans payable.
The acquisition of RxCompound and Peaks has resulted in growth for the Company
RxCompound was acquired on November 8, 2022, and Peaks was acquired shortly afterward. Each of these companies was acquired through a share exchange, and Earth Science Tech, Inc. recognized goodwill for both acquisitions.
The acquisition of RxCompound came with goodwill recognized at $138,312. Additionally, during the year ended March 31, 2023, RxCompound added various equipment for its hazardous room to compound hormonal creams. This equipment added purchase costs totaling $150,082. Depreciation on the equipment is charged using a straight-line method over the estimated useful life of 5 years. The goodwill is amortized over the estimated life of 10 years.
Intangible assets have also increased due to the acquisitions. Peaks’ telemedicine platform is now valued at $17,806, and the Company’s web domain is worth $19,323. Intangible assets with finite lives are amortized over the estimated useful life of five years, and goodwill is amortized over the estimated life of 10 years.
Regarding leases, RxCompoundStore.com, LLC entered into a lease arrangement
On May 26, 2022, at SW 74th Court Suite 101, Miami, FL. The lease requires monthly payments of $7,057 for a term of 36 months, plus a single lump-sum payment of $40,000 upon execution in June 2020. The facility includes two offices, a sterile compounding cleanroom, a cooking room, a reception area, a fulfillment area, and storage for inventory.
Earth Science Tech, Inc.’s strategic acquisitions and growth in notes payable signify its expanding commitment to the industry. Recognizing goodwill on these acquisitions and increasing its loans payable demonstrates the Company’s dedication to growth and development. The addition of RxCompound and Peaks Curative adds to Earth Science Tech, Inc.’s offerings, providing further resources and opportunities for expansion and success.
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