Acquisition of National Loan Exchange, Inc. (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid for NLEX and the amounts of the assets acquired and liabilities assumed, with the excess purchase price recognized as goodwill (in thousands).

Consideration
Cash paid on closing	$	2,000
Contingent consideration		3,989
Total purchase price	$	5,989

Acquisition related costs (included in selling, general, and administrative expenses in HGI’s consolidated statement of operations and comprehensive loss for the year ended December 31, 2014)	$	198

Recognized amounts of identifiable assets acquired and liabilities assumed
Cash	$	639
Other current assets		17
Fixed assets		14
Identifiable intangible assets		3,390
Accounts payable and accrued liabilities		(656	)
Deferred tax liability		(960	)
Total identifiable net assets assumed		2,444
Goodwill		3,545
	$	5,989

Schedule of NLEX Revenue and Earnings Included in HGI's Condensed Consolidated Statement of Operations

The amounts of NLEX revenue and net income for the period June 1, 2014 through December 31, 2014, and January 1, 2015 through December 31, 2015 included in HGI’s consolidated statement of operations for the years then ended, are shown below. Also shown are HGI’s pro-forma consolidated revenue and net loss as if the acquisition of NLEX had occurred on January 1, 2014 (in thousands):

	Revenue		Net income (loss)

NLEX revenue and net income included for the year ended December 31, 2015	$	4,503	$	1,640

NLEX revenue and net income included for the period June 1, 2014 through December 31, 2014	$	2,076	$	526

Supplemental pro-forma consolidated revenue and net loss (unaudited):
HGI revenue and net income for the year ended December 31, 2014	$	15,609	$	(26,506	)