Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Tables

Purchase Price Allocation

The purchase price was allocated as follows (in thousands):

Purchase Consideration:
Value of common stock and convertible preferred stock issued to sellers	$	5,511
Tangible assets acquired:
Cash		2,662
Prepaid expenses		35
Net tangible assets acquired		2,697
Purchase consideration in excess of fair value of net tangible assets		2,814
Allocated to:
Patent portfolios		1,102
Goodwill		1,712
	$	-

The purchase price allocation was based, in part, on management’s knowledge of North South’s business and the results of a third party appraisal commissioned by management.

The following table presents the unaudited pro-forma financial results, as if the acquisition of North South had been completed as of January 1, 2012 and 2013 (in thousands, except per share amounts):

	For the Years Ended December 31,
	2013			2012
Revenues	$	121		$	20
Net loss		(18,259	)		(4,023	)
Loss per share - basic and diluted	$	(8.49	)	$	(2.72	)

Amortization to acquired intangible assets

The gross carrying amounts and accumulated amortization related to acquired intangible assets as of December 31, 2013 and 2012 are as follows (in thousands, except year amounts): 

Date Acquired and Description	Amount Recorded		Weighted Average Life (in years)		Amortization Expense - Year Ended December 31, 2013		Patent Portfolio Net
7/24/13 - Rockstar patent portfolio	$	4,000		8.50	$	208	$	3,792
9/10/13 - North South patent portfolio		1,102		8.50		40		1,062
12/31/13 - Rockstar patent portfolio		60,000		6.50		19		59,981
	$	65,102			$	267	$	64,835

Future amortization of all patents

Future amortization of all patents is as follows (in thousands):

For the Years Ending	Rockstar Portfolio Acquired 24-Jul-13		North South Portfolio Acquired 10-Sep-13		Rockstar Portfolio Acquired 31-Dec-13		Total Amortization
December 31, 2014	$	470	$	130	$	9,225	$	9,825
December 31, 2015		470		130		9,225		9,825
December 31, 2016		471		130		9,250		9,851
December 31, 2017		470		130		9,225		9,825
December 31, 2018		470		130		9,225		9,825
Thereafter		1,442		416		13,826		15,684
Total	$	3,793	$	1,066	$	59,976	$	64,835