SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

VetZ GmbH Acquisition

On January 3, 2022, the Company acquired 100% of the equity of VetZ GmbH (“VetZ”), a European leader in veterinary practice information management software solutions (“PIMS”). The preliminary cash purchase price was approximately $32.1 million, including a general indemnity holdback of approximately $1.4 million. The preliminary cash purchase price is subject to potential purchase price adjustments, and the holdback must be released within 18 months of closing. Additionally, the seller may earn an additional $15.5 million in Heska stock, which will be issued in tranches based on future financial and non-financial milestones. The preliminary allocation of the cash purchase price to the fair value of assets acquired and liabilities assumed has not yet been completed. It is not practicable to disclose the preliminary purchase price allocation for this acquisition given the short period of time between the acquisition date and the issuance of these consolidated financial statements.

In connection with the VetZ acquisition, the Company entered into a related party building lease agreement with the former owners, who will now be employees of the Company. The Company will pay monthly rent of approximately $17 thousand for this lease beginning in January 2022. There was no financial statement impact for this lease agreement for the year ended December 31, 2021.

Stock Issuances

On February 17, 2022, the Compensation Committee of the Company's Board of Directors authorized the issuance of 51,919 performance-based restricted stock awards to executive officers and other members of management. The vesting of the restricted stock awards is subject to the achievement of certain Company performance conditions. The performance conditions must be achieved by December 31, 2025, otherwise the restricted stock awards are forfeited.