Acquisitions, Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2014

Consideration Transferred

The total consideration transferred follows:

Cash consideration	$	21,235,937
Value of common stock issued		4,000,000
Estimated fair value of contingent consideration		1,400,000
Total consideration transferred	$	26,635,937

Components and Allocation of Purchase Price

The components and allocation of the purchase price consists of the following approximate amounts:

Accounts receivable	$	1,646,746
Inventory		1,053,959
Other current assets		59,081
Fixed assets		353,505
Customer relationships		6,400,000
Developed technology		2,000,000
In process research and development (“IPR&D”)		1,600,000
Trademark and trade name		700,000
Accounts payable and other liabilities assumed		(357,399	)
Goodwill		13,180,045
Net assets acquired	$	26,635,937

Unaudited Supplemental Pro Forma Information

The following table presents unaudited supplemental pro forma information as if the Refine Acquisition had occurred as of January 1, 2013.

	Three Months ended June 30,				Six Months ended June 30,
	(in thousands, except per share amounts)				(in thousands, except per share amounts)
	2014		2013		2014		2013
Total revenue	$	17,707	$	19,047	$	35,659	$	37,343
Net income		3,818		4,394		7,996		6,373
Earnings per share:
Basic	$	0.12	$	0.14	$	0.25	$	0.20
Diluted	$	0.12	$	0.14	$	0.24	$	0.20

Other Intangible Assets - Finite-Lived

Other intangible assets consisted of the following at June 30, 2014:

	Gross Carrying Amount		Accumulated Amortization			Weighted Average Useful Life (in years)
Technology – developed	$	3,428,573	$	(629,007	)		12
In process research and development	$	1,600,000		—			—
Patents		240,000		(132,500	)		8
Customer relationships		13,047,732		(2,135,034	)		9
Trademark / tradename		700,000		—			—
Total other intangible assets	$	19,016,305	$	(2,896,541	)		10

Other intangible assets consisted of the following at December 31, 2013:

	Gross Carrying Amount		Accumulated Amortization			Weighted Average Useful Life (in years)
Technology – developed	$	1,455,382	$	(537,589	)		8
Patents		240,000		(117,500	)		8
Customer relationships		6,897,052		(1,749,713	)		8
Total other intangible assets	$	8,592,434	$	(2,404,802	)		8

Other Intangible Assets - Indefinite-Lived

Other intangible assets consisted of the following at June 30, 2014:

	Gross Carrying Amount		Accumulated Amortization			Weighted Average Useful Life (in years)
Technology – developed	$	3,428,573	$	(629,007	)		12
In process research and development	$	1,600,000		—			—
Patents		240,000		(132,500	)		8
Customer relationships		13,047,732		(2,135,034	)		9
Trademark / tradename		700,000		—			—
Total other intangible assets	$	19,016,305	$	(2,896,541	)		10

Other intangible assets consisted of the following at December 31, 2013:

	Gross Carrying Amount		Accumulated Amortization			Weighted Average Useful Life (in years)
Technology – developed	$	1,455,382	$	(537,589	)		8
Patents		240,000		(117,500	)		8
Customer relationships		6,897,052		(1,749,713	)		8
Total other intangible assets	$	8,592,434	$	(2,404,802	)		8