Quarterly report pursuant to Section 13 or 15(d)

Acquisition of AirPatrol (Details)

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Acquisition of AirPatrol (Details) (AirPatrol [Member], USD $)
Sep. 30, 2014
Apr. 18, 2014
AirPatrol [Member]
   
Assets Acquired:    
Cash   $ 71,000
Restricted cash   90,000
Receivables   21,000
Inventory   266,000
Other assets (Note A)   151,000 [1]
Property and equipment   244,000
Trade name/trademarks (Note B)   660,000 [2]
Customer relationships (Note B)   1,350,000 [2]
Developed technology (Note B)   10,840,000 [2]
Non-compete agreements (Note C)   420,000 [3]
Goodwill   7,390,000
Assets Acquired   21,503,000
Liabilities Assumed:    
Accounts payable and accrued liabilities   630,000
Other current liabilities (Note D)   949,000 [4]
Other long term liabilities (Note E)   232,000 [5]
Liabilities Assumed   1,811,000
Purchase Price $ 19,700,000 $ 19,692,000
[1] Other current assets consist primarily of approximately $32,000 of prepaid expenses and $119,000 of security deposits.
[2] The trade name/trademarks, customer relationships and developed technology are identifiable intangible assets that are being amortized over their useful life of seven years.
[3] The non-compete agreements are an identifiable intangible asset that is being amortized over their useful life of one and three years.
[4] Other current liabilities consist primarily of approximately $214,000 of payroll liabilities, $564,000 of an advance from SGHC that was settled immediately after closing, $42,000 of deferred rent and $129,000 of unearned revenue.
[5] Other long term liabilities consist primarily of approximately $132,000 for a furniture lease and a $100,000 note payable.