Business Combination (Tables)

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed

The preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows (in thousands):

Accounts receivable	$	40
Inventories	839
Prepaid expenses and other current assets	175
Property and equipment	58
Goodwill	1,953
Other intangible assets	1,303
Total assets acquired	4,368
Accounts payable	(702		)
Deferred revenue	(297		)
Accrued and other liabilities	(689		)
Total liabilities assumed	(1,688		)
Short-term contingent liabilities	(250		)
Other long-term contingent liabilities	(1,009		)
Cash paid at acquisition date	$	1,421

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

The following are the identifiable intangible assets acquired and their respective estimated lives, as determined based on preliminary valuations (in thousands):

	Fair Value		Estimated Useful Life (Years)
Acquired license agreements	$	1,040	5
Developed technology	138		5
Non-competition agreement	82		3
Customer lists	43		3
Total identifiable intangible assets	$	1,303

Business Acquisition, Pro Forma Information

The following unaudited pro forma consolidated financial information reflects the results of operations of the Company as if the acquisition had been completed as of January 1, 2013, after giving effect to certain pro forma accounting adjustments. The pro forma adjustments were recorded principally for the purpose of eliminating intercompany transactions between the Company and Treehouse, adjusting for depreciation and amortization expense based on the fair values of the assets acquired, and adjusting for stock based compensation expense related to a senior management award. These pro forma results are not necessarily indicative of what the Company's operating results would have been had the acquisition actually taken place at the beginning of the period.

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
($ in thousands, except per share amounts)
Net revenue	$	22,833		$	24,708		$	73,145		$	69,885
Net loss	(3,000		)	(1,476		)	(10,141		)	(5,677		)
Basic and diluted earnings per share	$	(0.45	)	$	(0.22	)	$	(1.52	)	$	(0.86	)