SUBSEQUENT EVENT - UNAUDITED

12 Months Ended

Dec. 31, 2011

SUBSEQUENT EVENT - UNAUDITED

SUBSEQUENT EVENT - UNAUDITED

(10)     SUBSEQUENT EVENT - UNAUDITED

On January 3, 2012, we acquired the assets and operating business of Texas-based TRX Industries, Inc. (“TRX”), a manufacturer of perforating guns, for a purchase price of $10,194.  TRX, which will operate as a division of DYNAenrgetics US, has been a long-term supplier to DYNAenergetics US and, in recent years, accounted for a rapidly growing percentage of its perforating gun purchases.

The acquisition of TRX was structured as an asset purchase in an all-cash transaction.  The purchase price was allocated to tangible and identifiable intangible assets based on their fair values as determined by appraisals performed as of the acquisition date.  The allocation of the preliminary purchase price to the assets of TRX was as follows:

Current assets	$	2,702
Property, plant and equipment	2,227
Intangible assets	5,265
Deferred tax assets	40
Total assets acquired	10,234
Current liabilities	40
Total liabilities assumed	40
Net assets acquired	$	10,194

We acquired identifiable finite-lived intangible assets as a result of the acquisition of TRX.  The finite-lived intangible assets acquired were classified as customer relationships and were valued at $5,265, which is being amortized over 11 years.

For the year ended December 31, 2011, TRX had net sales and operating income of approximately $11,600 and $2,900, respectively.  Approximately 40% of TRX’s net sales and operating income relates to shipments to our DYNAenergetics US subsidiary.  These results are not necessarily indicative of the future results of TRX following its integration into our company.