Quarterly report pursuant to Section 13 or 15(d)

Acquisition of the Business of Lilien LLC (Tables)

v2.4.0.8
Acquisition of the Business of Lilien LLC (Tables) (Lilien LLC)
3 Months Ended
Mar. 31, 2014
Lilien LLC
 
Business Acquisition [Line Items]  
Schedule of purchase price allocation
 
Assets Acquired:
     
Cash
  $ 1,112,485  
Receivables
    4,870,471  
Inventory
    55,410  
Other current assets (Note A)
    852,759  
Prepaid Licenses/Contracts (Note B)
    9,146,954  
Property and equipment
    254,638  
Trade name/trademarks (Note C)
    3,250,000  
Customer relationships (Note C)
    2,130,000  
Goodwill
    4,544,053  
      26,216,770  
Liabilities Assumed:
       
Accounts payable
    5,094,390  
Accrued expenses (Note D)
    970,139  
Deferred Revenue
    11,152,241  
      17,216,770  
Purchase Price
  $ 9,000,000  
 
(A)
Other current assets consist primarily of $356,000 of rebates receivable, $107,000 of prepaid expenses, $195,000 of unbilled revenues and $153,000 for a working capital settlement adjustment. The asset purchase agreement included a provision for an adjustment to working capital as of the closing date of the transaction.
(B)
Prepaid licenses/contracts are payments made by the Company directly to the manufacturer for the maintenance services and are being amortized over the life of the contract
(C)
The trade name/trademarks and customer relationships are identifiable intangible assets that are being amortized over their useful life of seven years.
(D)
Accrued expenses consist primarily of $654,000 of accrued compensation, $50,000 of accrued other operational expenses and $35,000 of sales taxes payable.