NOTE 3: ACQUISITIONS

In March 2020, the Company acquired all of the issued and outstanding capital stock of Newrow, Inc., a Delaware privately held corporation (“Newrow”), through a share exchange agreement. Newrow develops and sells real-time video communication software solutions. The acquisition is intended to support the Company's plans to continue strengthening its technological capabilities and the depth of its product offering. The acquisition has been accounted for as a business combination. The total purchase price was $3,799 paid through issuance of 1,226,515 shares of the Company's common stock. In addition, there is a contingent consideration comprised of a warrant to purchase up to 613,255 shares of the Company's common stock subject to certain performance targets.

The Company accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values, as presented in the following table:

	Amount

Common stock	$	2,578
Warrant to common stock		1,221

Total purchase consideration	$	3,799

Goodwill	$	1,689
Identified intangible assets		2,483
Net liabilities assumed, net of cash acquired		(756	)
Cash acquired		383

Total	$	3,799

Goodwill of $1,689, none of which is deductible for tax purposes, was recorded in connection with the Newrow acquisition, and was primarily attributed to synergies arising from the acquisition and the value of the acquired workforce. The goodwill was allocated to the Enterprise, Education and Technology segment.

The following table presents details of the identified intangible assets acquired:

	Fair Value		Estimated Useful Life

Developed technology	$	2,130		5 years
Customers relationship		353		7 years

	$	2,483

Transaction costs incurred by the Company in connection with the Newrow acquisition were approximately $91 during the year ended December 31, 2020, and were recorded within general and administrative expenses in the consolidated statements of operations.