Quarterly report pursuant to Section 13 or 15(d)

Acquisition of the Business of Lilien LLC (Details)

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Acquisition of the Business of Lilien LLC (Details) (Lilien LLC [Member], USD $)
Mar. 31, 2013
Lilien LLC [Member]
  
Assets Acquired:  
Cash $ 1,112,485
Receivables 4,870,471
Inventory 55,410
Other current assets (Note A) 852,759 [1]
Prepaid Licenses/Contracts (Note B) 9,146,954 [2]
Property and equipment 254,638
Trade name/trademarks (Note C) 3,250,000 [3]
Customer relationships (Note C) 2,130,000 [3]
Goodwill 4,544,053
Assets Acquired 26,216,770
Liabilities Assumed:  
Accounts payable 5,094,390
Accrued expenses (Note D) 970,139 [4]
Deferred Revenue 11,152,241
Liabilities Assumed 17,216,770
Purchase Price $ 9,000,000
[1] 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.
[2] 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
[3] The trade name/trademarks and customer relationships are identifiable intangible assets that are being amortized over their useful life of seven years.
[4] Accrued expenses consist primarily of $654,000 of accrued compensation, $50,000 of accrued other operational expenses and $35,000 of sales taxes payable.