Quarterly report pursuant to Section 13 or 15(d)

Reverse Acquisition

v3.7.0.1
Reverse Acquisition
3 Months Ended
Mar. 31, 2017
Reverse Acquisition [Abstract]  
Reverse Acquisition

Note 14 – Reverse Acquisition

 

On November 1, 2013, CES entered into an Agreement and Plan of Merger (the “Merger Agreement”), with CES Acquisitions, Inc. (the “Subsidiary”) and the Company, which was a shell company that traded on the OTC bulletin board. Pursuant to the Merger Agreement, the Subsidiary merged into CES, such that CES became a wholly-owned subsidiary of the Company (the “Merger”); and the Company issued 35,000,000 shares of the Company’s common stock to the shareholders of CES, representing approximately 75.2% of the Company’s aggregate issued and outstanding common stock following the closing of the Merger Agreement. The share exchange is being accounted for as a recapitalization, and not as a business combination under the scope of FASB ASC Topic 805. CES is the acquirer for accounting purposes and the Company is the acquired company. Accordingly, CES’s subchapter S corporate status was terminated at the date of the Merger.