Business Combinations (Tables)

12 Months Ended

Dec. 31, 2017

The estimated future amortization expense of intangibles as at December 31, 2017 is as follows:

The following table summarizes the fair value allocations of assets acquired and liabilities assumed as a part of this acquisition:

	Fair Value
Cash	$	56
Property, plant and equipment		305
Prepaid expenses		234
Trade and other receivables		2,721
Intangible assets
Developed software		10,000
Customer relationships		5,800
Brand		1,400
Goodwill		12,680
Accounts payable		(286	)
Accrued liabilities and other		(555	)
Income taxes payable		(216	)
Deferred revenue		(1,573	)
HST/ GST payable		(18	)
Long-term debt		(63	)
Deferred tax liabilities		(4,796	)
Net assets acquired	$	25,689

Cash paid on closing	$	17,675
Shares issued		662
Fair value of contingent share considerations		2,650
Fair value of contingent cash considerations		3,800
Shareholder loan repaid		902
Total considerations transferred	$	25,689

Expected future amortization is as follows:


	Customer relationships and Brand		Developed software		Total
2018	$	1,029	$	2,000	$	3,029
2019		1,029		2,000		3,029
2020		1,029		2,000		3,029
2021		1,029		2,000		3,029
2022		1,029		667		1,696
Thereafter		1,369		-		1,369
	$	6,514	$	8,667	$	15,181

The following table summarizes the fair value allocations of assets acquired and liabilities assumed as a part of this acquisition:

	Fair Value
Cash	$	2,078
Accounts receivable and other receivables		8,447
Embedded derivatives		52
Work in progress - unbilled revenue		4,711
Income taxes receivables		288
Inventory		5,883
Prepaid and other assets		1,977
Investment tax credits		670
Deferred tax asset		1,361
Property, plant and equipment		2,672
Intangible assets
Customer relationships		8,100
Developed software		7,400
Brand		5,900
Backlog		1,300
Goodwill		15,820
Investment - XPCT		3,036
Bank indebtedness		(2,182	)
Current portion of long term debt		(95	)
Long-term debt		(333	)
Accounts payable and accrued liabilities		(6,277	)
Deferred revenue - short term		(4,337	)
Deferred revenue - long term		(465	)
Income taxes		(29	)
Deferred tax liability		(6,117	)
Net assets acquired	$	49,860

Cash paid on closing	$	47,209
Cash out considerations		2,651
Total considerations transferred	$	49,860

Expected future amortization related to this business acquisition is as follows:

	Customer relationships, Brand and Backlog		Developed software		Total
2018	$	2,310	$	1,495	$	3,805
2019		2,310		1,495		3,805
2020		2,310		1,495		3,805
2021		2,310		1,495		3,805
2022		2,310		622		2,932
Thereafter		3,276		-		3,276
	$	14,826	$	6,602	$	21,428

The following table summarizes the fair value allocations of assets acquired and liabilities assumed as a part of this acquisition:

	Fair Value
Cash	$	72
Accounts receivable		413
Other receivables		77
Inventory		459
Prepaid and other assets		19
Property, plant and equipment		24
Investment tax credits		563
Intangible assets
Customer relationships		254
Developed software		251
Goodwill		246
Bank indebtedness		(32	)
Accounts payable and accrued liabilities		(532	)
Long term debt		(458	)
Deferred tax liability		(172	)
Net assets acquired	$	1,184

Cash paid on closing	$	865
Shareholder loan		319
Total considerations paid	$	1,184

Expected future amortization related to this business acquisition is as follows:

	Customer relationships, Brand and Backlog		Developed software		Total
2018	$	38	$	52	$	90
2019		38		52		90
2020		38		52		90
2021		38		52		90
2022		38		17		55
Thereafter		45		-		45
	$	235	$	225	$	460