Merger (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Preliminary Allocation of Purchase Price

The preliminary allocation of purchase price is as follows:



(in thousands)
Cash	$	1,936
Accounts receivable	3,128
Inventory and other assets	1,208
Fixed assets	1,041
Technology	4,200
Customer relationships	3,400
Trade name/trademark	200
Non-compete agreements	10
Goodwill	6,372
Accounts payable	(2,945		)
Accrued expenses and other liabilities	(4,448		)
Line of credit	(4,684		)
Capital leases	(334		)
Deferred revenue	(200		)
Subordinated promissory note	(2,092		)
Preliminary Purchase Price	$	6,792

Schedule of Methods Used to Determine Fair Value of Acquired Intangibles

The method used to determine the fair value of the intangible assets acquired and their estimated useful lives are as follows:



Intangible Asset	Fair Value Method	Estimated Useful Life
Technology	Income Approach, Relief from Royalty	6 years
Customer relationships	Income Approach, Multi-Period Excess Earnings	8 years
Trade name/trademark	Income Approach, Relief from Royalty	9 months
Non-compete agreements	Income Approach Lost Profits Method	1 year

Schedule of Unaudited Pro Forma Information

The following table provides unaudited pro forma results of operations for the three and nine month periods ended September 30, 2017 and 2016, as if the Merger had been completed on the first day of the Company's 2016 fiscal year.



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2017			2016			2017			2016
	(restated)						(restated)			(restated)
Pro forma revenues	$	13,395		$	16,148		$	37,969		$	42,538

Pro forma loss from continuing operations	$	(4,962	)	$	(6,260	)	$	(16,642	)	$	(22,264	)