XML 32 R20.htm IDEA: XBRL DOCUMENT

Etratech Acquisition (Tables) - Etratech Inc.

6 Months Ended

Jun. 30, 2018

The purchase price allocation as of November 1, 2017 was as follows:


Accounts receivable	$	12,654
Inventory		7,014
Prepaid expenses and other assets		535
Property and equipment		6,205
Customer relationships		24,774
Technology		8,588
Goodwill		14,881
Assumed liabilities		(9,642	)
Net assets acquired		65,009
Cash acquired		670
Purchase price	$	65,679

Supplemental Pro Forma Information

The unaudited pro forma combined historical results including the amounts of Etratech revenue and earnings that would have been included in the Company’s consolidated statements of income had the acquisition date been January 1, 2017 is as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2017		2017
Product revenues	$	257,526	$	519,476
Net income	$	9,072	$	34,846
Basic earnings per share	$	0.25	$	0.95
Diluted earnings per share	$	0.25	$	0.95

Schedule of Intangible Assets, Net

Note 3 – Etratech Acquisition – Continued

Intangible assets, net consisted of the following (balances are lower as of June 30, 2018 than as of November 1, 2017, the acquisition date, due to fluctuations in foreign currency exchange rates totaling $1,027):

	June 30, 2018
	Gross Value		Accumulated Amortization		Net Value		Useful Life
Customer relationships	$	24,006	$	1,378	$	22,628	8 -12 yrs
Technology		8,329		1,084		7,245	5 -6 yrs
Total	$	32,335	$	2,462	$	29,873

Summary of Amortization Expense

Amortization expenses of $889 and $1,847 during the three and six months ended June 30, 2018, respectively, were recognized in our consolidated condensed statement of income as follows:

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Product revenues	$	498	$	1,034
Cost of sales		391		813

Estimate of Total Intangible Asset Amortization

Amortization expense for the prospective five years is expected to be as follows:

July 1, 2018 through December 31, 2018	$	1,844
2019	$	3,688
2020	$	3,688
2021	$	3,627
2022	$	3,208
2023	$	2,546

Summary of Property and Equipment

Property and equipment consist of the following:

Asset category	Useful life	Amount
Leasehold improvements	10 yrs	$	342
Machinery and equipment	4-11 yrs		5,248
Furniture and fittings	4 yrs		230
Motor vehicles	3 yrs		25
Computer hardware and software	1 yrs		360

		$	6,205