ACQUISITION AND RELATED PARTY ITEMS ACQUISITION AND RELATED PARTY ITEMS (Tables)

9 Months Ended

Sep. 30, 2020

Business Combinations and Related Party Disclosure [Abstract]

Schedule of Business Acquisitions, by Acquisition

The information below represents the preliminary purchase price allocation of scil (in thousands):

	April 1, 2020
Total purchase consideration	$	109,753
Cash and cash equivalents	5,889
Accounts receivable	10,707
Inventories	11,349
Net investment in leases, current	311
Prepaid expenses	1,404
Other current assets	405
Property and equipment, net	19,320
Operating lease right-of-use assets	877
Other intangible assets, net	44,517
Net investment in leases, non-current	1,027
Investments in unconsolidated affiliates	55
Other non-current assets	291
Total assets acquired	96,152
Accounts payable	8,221
Accrued liabilities	6,355
Operating lease liabilities, current	356
Deferred revenue, current, and other	3,220
Deferred revenue, non-current	94
Operating lease liabilities, non-current	529
Deferred tax liability	13,147
Other liabilities	276
Net assets acquired	63,954
Goodwill	45,799
Total fair value of consideration transferred	$	109,753

The preliminary fair values allocated to CVM's assets and liabilities as of the acquisition date, as well as the purchase price, are reflected in the table below (in thousands):

	December 5, 2019
Consideration paid to former owners	$	14,420
Cash and cash equivalents	1,226
Accounts receivable	583
Inventories	1,621
Other current assets	1,186
Property and equipment	345
Other intangible assets	2,608
Other non-current assets	460
Total assets acquired	8,029
Accounts payable	(94)
Accrued liabilities	(471)
Current portion of deferred revenue, and other	(54)
Deferred tax liability	(683)
Other long-term borrowings	(1,109)
Other liabilities	(157)
Net assets acquired	5,461
Goodwill	8,959
Total fair value of consideration transferred	$	14,420

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

tangible assets acquired, amortization method and estimated useful life as of April 1, 2020, was as follows (dollars in thousands):

	Useful Life	Amortization Method	Fair Value
Customer relationships	10 years	Straight-line	$	36,272
Internally developed software	7 years	Straight-line	353
Backlog	0.2 years	Straight-line	210
Non-compete agreements	2 years	Straight-line	60
Trade name subject to amortization	0.8 years	Straight-line	66
Trademarks and trade names not subject to amortization	n/a	Indefinite	7,556
Total intangible assets acquired			$	44,517

Intangible assets acquired, amortization method and estimated useful life as of December 5, 2019, was as follows (dollars in thousands):

	Useful Life	Amortization Method	Fair Value
Customer relationships	6 years	Straight-line	$	2,440
Trade name	4 years	Straight-line	111
Developed technology	n/a	Indefinite	57
			$	2,608

Business Acquisition, Pro Forma Information

The following tables present unaudited supplemental pro forma financial information as if the acquisition had occurred on January 1, 2019 (in thousands):

	Nine Months Ended September 30, 2020
Revenue, net	$	151,522
Net (loss) income before equity in losses of unconsolidated affiliates	$	(17,733)
Net (loss) income attributable to Heska Corporation	$	(17,680)

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Revenue, net	$	49,346	$	144,372
Net (loss) income before equity in losses of unconsolidated affiliates	$	(451)	$	(1,407)
Net (loss) income attributable to Heska Corporation	$	(557)	$	(1,730)

The following table presents unaudited supplemental pro forma financial information as if the CVM acquisition had occurred on January 1, 2019 (in thousands):

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Revenue, net	$	32,910	$	94,462
Net (loss) income before equity in losses of unconsolidated affiliates	$	164	$	789
Net (loss) income attributable to Heska Corporation	$	58	$	466