Business Combination (Tables)

9 Months Ended

Sep. 30, 2014

As of September 30, 2014, the total purchase consideration and the purchase price allocation were as follows:

Fair value of assumed equity allocated to purchase consideration	$	10,985,867
Total purchase consideration	$	10,985,867

Goodwill	$	8,858,504
Intangible asset contract rights		1,342,000
Other assets acquired		816,045
Liabilities assumed		(30,682)
Total purchase allocation	$	10,985,867

Supplemental Pro Forma Information

The pro forma financial information is presented for informational purposes only for the purpose of comparing the nine months ended September 30, 2014 with the nine months ended September 30, 2013 and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2013 or of results that may occur in the future.

	For the three months ended September 30,				For the nine months ended September 30,
	2014		2013		2014		2013
Revenue (1)	$	306,603	$	177,000	$	756,613	$	549,000
Net loss (2)	$	2,870,467	$	1,864,853	$	11,668,286	$	3,498,300

(1)

Revenue for the three months ended September 30, 2014 and 2013 is from the Company’s access control security product lines acquired in the Merger.

(2)

Pro forma net loss was adjusted to exclude Merger related expenses of $0 and $1,250,000 for the three months ended September 30, 2014 and 2013, respectively, and $1,237,641 and $1,250,000 for the nine months ended September 30, 2014 and 2013, respectively. Additional expense for the amortization of acquired intangible assets of $0 and $67,100 for the three months ended September 30, 2014 and 2013, respectively, and $111,833 and $201,300 for the nine months ended September 30, 2014 and 2013, respectively, was included in the net loss.