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Note 2 - Acquisition
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Business Combination Disclosure [Text Block]
2.
ACQUISITION
 
On
July 22, 2014 (
the “Acquisition Date”), the Company acquired
100%
of the outstanding capital stock of Sensima Technology SA (“Sensima”) for total purchase consideration o
f
$14.2
million, which consisted of a cash payment of
$11.7
million and the fair value of contingent consideration of
$2.5
million.
 
The contingent consideration arrangement required the Company to pay up to an additional
$8.9
million to former Sensima shareholders if Sensima achieved a new product introduction as well as certain product revenue and direct margin targets in
2016.
The fair value of the contingent consideration at the Acquisition Date was
$2.5
million, which was estimated based on a probability-weighted analysis of possible future
 revenue outcomes. The fair value of the contingent consideration was initially recorded in other long-term liabilities in the Consolidated Balance Sheets and was remeasured at the end of each reporting period, with any changes in fair value recorded in operating expense in the Consolidated Statements of Operations. As part of the quarterly assessment in the
fourth
quarter of
2015,
management reviewed the sales forecast for the products and determined that the projected product revenue in
2016
would likely
not
meet the minimum target required to earn the contingent consideration, primarily because the product adoption process by customers would take longer than the Company had originally anticipated. Accordingly, the fair value of the contingent consideration was deemed to be
$0
as of
December 31, 2015.
The Company released the liability of
$2.5
million and recorded the credit in selling, general and administrative expenses for the year ended
December 31, 2015.
 
On
December 31, 2016,
at the conclusion of the performance period, management affirmed that
no
contingent consideration was earned as the actual product revenue in
2016
did
not
meet the minimum target.