2.	ACQUISITIONS

Honor Worldwide Logistics, LLC

Through its wholly-owned subsidiary, Janel Group, Inc. (“Janel Group”), the Company acquired the membership interests of Honor Worldwide Logistics LLC (“Honor”) on November 20, 2018 in a transaction pursuant to which Honor became a direct wholly-owned subsidiary of Janel Group and an indirect wholly-owned subsidiary of the Company. The acquisition of Honor was funded with cash provided by normal operations along with the subordinated promissory note. Honor provides global logistics services with two U.S. locations in Charleston and Houston and expands the domestic network of the Company's Global Logistics Services segment. The results of operations for Honor are reflected in the Global Logistics Services reporting segment.

Sea Cargo, Inc.

On October 17, 2018, we completed a business combination whereby we acquired substantially all of the assets and certain liabilities of Sea Cargo, Inc. (“Sea Cargo”), a global logistics services provider with one U.S. location. The acquisition of Sea Cargo was funded with cash provided by normal operations. This acquisition was completed primarily to expand our services and offerings and was related to our Global Logistics Services business.

Purchase price allocation

The aggregate purchase price for the Honor and Sea Cargo acquisitions was $2,392, net of $70 of cash received. At closing, $2,006 was paid in cash, a subordinated promissory note in the aggregate amount of $456 was issued to a former member and $50 was recorded in accrued expenses as a preliminary earnout consideration. In accordance with the acquisition method of accounting, the Company allocated the consideration paid for Honor and Sea Cargo to the net tangible and identifiable intangible assets based on their estimated fair values. The Company is still finalizing the valuation of assets acquired and liabilities assumed, and, as such, the fair value amounts are preliminary and subject to change. Primary amounts subject to adjustment include, but are not limited to, intangible assets, fair value of accounts receivable or a change in the goodwill balance. Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and identifiable intangible assets.