On February 12, 2020, the Company acquired the operator business of Circle Media Labs Inc. (“Circle”) pursuant to a certain Asset Purchase Agreement by and between the Company and Circle.

The following table summarizes the consideration paid for the Circle acquisition in 2020 (unaudited, in thousands):

Fair value of assets acquired	$	14,966
Fair value of liabilities assumed		1,466
Total purchase price	$	13,500

Components of purchase price:
Cash	$	13,500
Total purchase price	$	13,500

The Company’s allocation of the purchase price is summarized as follows (in thousands):

Assets:
Inventory, net	$	14
Intangible assets		10,483
Goodwill		4,469
Total assets	$	14,966
Liabilities:
Deferred revenue	$	1,290
Amounts due to seller		176
Total liabilities	$	1,466
Total purchase price	$	13,500

Pursuant to the transaction, Smith Micro acquired certain assets related to the Circle operator business, including two new customer contracts and a source code license to Circle’s then deployed parental control software and related technology.

Unaudited pro forma results of operations for the years ended December 31, 2020 and 2019 are included below as if the Circle acquisition occurred on January 1, 2019. This summary of the unaudited pro forma results of operations is not necessarily indicative of what the Company’s results of operations would have been had Circle been acquired at the beginning of 2019, nor does it purport to represent results of operations for any future periods.

	Year Ended December 31,
	2020		2019
	(in thousands, except per share amounts)
Revenues	$	51,767	$	47,252
Net income		4,225		10,322
Earnings per share:
Basic	$	0.10	$	0.30
Diluted	$	0.10	$	0.28

In December 2018, the Company entered into a definitive agreement to acquire the net assets of ISM Connect, LLC’s Smart Retail product Suite (“Smart Retail”). The transaction closed on January 9, 2019.

The following table summarizes the consideration paid for the Smart Retail acquisition in 2019 (in thousands):

Fair value of assets acquired	$	9,394
Fair value of liabilities assumed		291
Total purchase price	$	9,103

Components of purchase price:
Cash	$	3,974
Common stock		5,129
Total purchase price	$	9,103

The Company’s allocation of the purchase price is summarized as follows (in thousands):

Assets:
Costs incurred on projects not complete	$	53
Intangible assets		5,229
Goodwill		4,112
Total assets	$	9,394
Liabilities:
Deferred revenue	$	291
Total liabilities	$	291
Total purchase price	$	9,103

The purpose of the Smart Retail acquisition was to acquire a new growing and profitable revenue stream while deepening the relationships with our customers. The Smart Retail platform, which the Company now calls ViewSpot, enables wireless carriers and retailers to offer powerful on-screen, interactive device demos that deliver consistent, secure and targeted content that showcase the features of the devices that consumers what to see and learn more about. ViewSpot provides analytics capabilities, which allows customers to gain valuable insights and buying behaviors. The platform was a logical addition to the Company’s existing product line that reaches wireless carriers and provides them with services that can attract and retain customers.