ACQUISITION AND RELATED PARTY ITEMS ACQUISITION AND RELATED PARTY ITEMS (Tables)

6 Months Ended

Jun. 30, 2020

Business Combinations and Related Party Disclosure [Abstract]

Schedule of Business Acquisitions, by Acquisition

The information below represents the preliminary purchase price allocation of scil (in thousands):

	April 1, 2020
Total purchase consideration	$	111,564
Cash and cash equivalents	5,837
Accounts receivable	11,087
Inventories	11,373
Prepaid expenses	1,391
Other current assets	281
Property and equipment	19,023
Operating lease right-of-use assets	869
Other intangible assets	44,119
Deferred tax asset	1,013
Investments in unconsolidated affiliates	55
Other non-current assets	1,373
Total assets acquired	96,421
Accounts payable	8,721
Accrued liabilities	6,270
Operating lease liabilities, current	353
Deferred revenue, current, and other	2,669
Deferred revenue, non-current	132
Operating lease liabilities, non-current	524
Deferred tax liability	14,044
Other liabilities	274
Net assets acquired	63,434
Goodwill	48,130
Total fair value of consideration transferred	$	111,564

The preliminary fair values allocated to CVM's assets and liabilities as of the acquisition date, as well as the purchase price, are reflected in the table below (in thousands):

	December 5, 2019
Consideration paid to former owners	$	14,420
Cash and cash equivalents	1,226
Accounts receivable	583
Inventories	1,621
Other current assets	1,186
Property and equipment	345
Other intangible assets	2,608
Other non-current assets	460
Total assets acquired	8,029
Accounts payable	(94)
Accrued liabilities	(471)
Current portion of deferred revenue, and other	(54)
Deferred tax liability	(683)
Other long-term borrowings	(1,109)
Other liabilities	(157)
Net assets acquired	5,461
Goodwill	8,959
Total fair value of consideration transferred	$	14,420

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

Intangible assets acquired, amortization method and estimated useful life as of April 1, 2020, was as follows (dollars in thousands):

	Useful Life	Amortization Method	Fair Value
Customer relationships	10 years	Straight-line	$	35,948
Internally developed software	7 years	Straight-line	350
Backlog	0.2 years	Straight-line	208
Non-compete agreements	2 years	Straight-line	59
Trade name subject to amortization	0.8 years	Straight-line	66
Trademarks and trade names not subject to amortization	n/a	Indefinite	7,488
Total intangible assets acquired			$	44,119

Intangible assets acquired, amortization method and estimated useful life as of December 5, 2019, was as follows (dollars in thousands):

	Useful Life	Amortization Method	Fair Value
Customer relationships	6 years	Straight-line	$	2,440
Trade name	4 years	Straight-line	111
Developed technology	n/a	Indefinite	57
			$	2,608

Business Acquisition, Pro Forma Information

The following tables present unaudited supplemental pro forma financial information as if the acquisition had occurred on January 1, 2019 (in thousands, except per share amounts):

	Six Months Ended June 30, 2020
Revenue, net	$	94,917
Net (loss) income before equity in losses of unconsolidated affiliates	$	(12,512)
Net (loss) income attributable to Heska Corporation	$	(12,461)

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Revenue, net	$	47,276	$	95,026
Net (loss) income before equity in losses of unconsolidated affiliates	$	(400)	$	(955)
Net (loss) income attributable to Heska Corporation	$	(480)	$	(1,172)

The following table presents unaudited supplemental pro forma financial information as if the CVM acquisition had occurred on January 1, 2019 (in thousands):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Revenue, net	$	29,931	$	61,552
Net (loss) income before equity in losses of unconsolidated affiliates	$	(198)	$	626
Net (loss) income attributable to Heska Corporation	$	(278)	$	409