Acquisition of a Business (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Fair Value of the Intangible and Other Assets Acquired

The purchase price allocations for our acquisition of Transcend Products were prepared by the Company’s management utilizing a valuation report, which was prepared in accordance with the provisions of ASC 805 Business Combination, and other tools available to the Company, including conversations with Transcend’s management and projections of revenues and expenses. The fair values of the intangible assets were determined primarily using the income approach and the discount rates range from 13.4% to 16.4%. The total purchase price, which includes the contingent consideration liability above, was preliminarily allocated as follows (in thousands):

	July 2, 2013
Property and equipment, net	$	29
Intangible assets, net		3,249
Goodwill		2,477
Total assets acquired	$	5,755

Summary of Intangible Assets

Intangible assets acquired resulting from the acquisition include customer relationships, patents and technology, which are amortized on a straight-line basis. The following sets forth the intangible assets purchased as part of the Transcend acquisition and their economic useful life at the date of acquisition (in thousands, except useful life):

	March 31, 2014
	Gross Assets		Accumulated Amortization			Intangible Assets, net		Economic Useful Life (in years)
Customer relationships	$	168	$	(37	)	$	131		3.5
Patents		2,168		(163	)		2,005		10.0
Technology		913		(139	)		774		5.0
Total intangible assets	$	3,249	$	(339	)	$	2,910