SeaBotix Inc. Acquisition (Tables)

9 Months Ended

Mar. 31, 2014

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The total purchase price paid or accrued consisted of the following:

Cash paid	$	9,500,000
Accrual for contingent earnout payments		5,000,000
Accrual for holdback and pro forma working capital adjustment		1,560,000
Total purchase price	$	16,060,000

The final purchase price allocation was as follows:

Net current assets, including cash acquired of $316,000 and accounts receivable of $1,342,000	$	4,963,000
Non-current assets (mainly property and equipment)		796,000
Goodwill		6,270,000
Other intangible assets		8,500,000
Accounts payable and accrued expenses		(1,010,000)
Debt assumed		(539,000)
Deferred tax liability (non-current)		(2,920,000)
Total purchase price allocation	$	16,060,000

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

Set forth below is a summary of the activity in the contingent earnout liability (all amounts represent fair values) from the date of closing to March 31, 2014:

	Contingent
	Earnout
	Liability

Balance at closing	$	5,000,000
Earnout paid in fiscal year 2011		(2,000,000)
Balance at June 30, 2011		3,000,000
Earnout paid in fiscal year 2012		(2,500,000)
Increase to contingent earnout liability in June 2012		4,500,000
Balance at June 30, 2012		5,000,000
Earnout paid in fiscal year 2013		(2,185,000)
Increase to contingent earnout liability in June 2013		500,000
Balance at June 30, 2013		3,315,000
Increase to contingent earnout liability in December 2013		1,500,000
Balance at December 31, 2013		4,815,000
Earnout paid in fiscal year 2014		(3,005,000)
Balance at March 31, 2014	$	1,810,000