

Accounts Receivable	$	7,677,000
Inventory	6,523,000
Other Current Assets	832,000
Property and Equipment	12,994,000
Intangibles	16,770,000
Goodwill	21,476,000
Accounts Payable	(3,181,000		)
Other Current Liabilities	(86,000		)
	$	63,005,000

The purchase price included consideration for strategic benefits, including an assembled workforce, operational infrastructure and synergistic revenue opportunities, which resulted in the recognition of goodwill. The goodwill is deductible for income tax purposes.

The company incurred $1,289,000 and $596,000 of expense in 2018 and 2017, respectively, associated with the acquisition, which is recorded in selling, general and administrative expense.

The amount allocated to intangible assets has been attributed to the following categories and will be amortized over the useful lives of each individual asset identified on a straight-line basis as follows:



Acquired Intangible Assets	Estimated Fair Value		Estimated Useful Life (Years)
Non-competition Agreement	$	1,810,000	5
Trademarks	1,610,000		10
Developed Technology	4,420,000		7
Customer Relationships	8,930,000		12
Total	$	16,770,000

Pro Forma Information

The unaudited pro forma information for the combined results of the Company has been prepared as if the 2018 acquisitions had taken place on January 1, 2017. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transactions actually taken place on January 1, 2017 and the unaudited pro forma information does not purport to be indicative of future financial operating results.



	Pro forma for the year ended December 31,
	2018			2017
Net revenue	$	272,153,000		$	222,015,000
Net income (loss)	(3,788,000		)	8,121,000
Net income (loss) per common share:
Basic	$	(0.49	)	$	1.06
Diluted	$	(0.49	)	$	1.05

The unaudited pro forma net income includes the following adjustments that would have been recorded had the 2018 acquisition taken place on January 1, 2017.



	Pro forma for the year ended December 31,
	2018			2017
Depreciation expense	$	55,000		$	50,000
Amortization expense	78,000			1,876,000
Interest (income) expense	(208,000		)	1,705,000
Non-recurring transaction costs	(1,289,000		)	(596,000		)
Income tax expense (benefit)	253,000			(880,000		)