GTX Acquisition

6 Months Ended

Jun. 30, 2020

GTX Acquisition [Abstract]

GTX Acquisition

Note 5 - GTX Acquisition

On June 27, 2019, the Company completed its acquisition of certain assets of GTX Corp ("GTX"), consisting of a portfolio of GPS technologies and intellectual property (the "Assets") that allow us to provide positioning and positioning solutions for assets and devices homogenously from the indoors to the outdoors. Prior to this asset acquisition, the Company was only providing indoor location. 

The Assets were acquired for aggregate consideration consisting of (i) $250,000 in cash delivered at the closing and (ii) 22,223 shares of the Company's restricted common stock.

The total recorded purchase price for the transaction was $900,000, which consisted of the cash paid of $250,000 and $650,000 representing the value of the stock issued upon closing.

The purchase price was allocated based on the receipt of a final valuation report as follows (in thousands):

Developed technology	$	830
Non-compete agreements		68
Goodwill		2
Total Purchase Price	$	900

On September 16, 2019, the Company loaned GTX $50,000 in accordance with the terms of the asset purchase agreement. The note began to accrue interest at a rate of 5% per annum beginning on November 1, 2019. The note was amended on May 11, 2020 to extend the maturity date from April 13, 2020 to September 13, 2020 and require monthly payments against the outstanding balance of the note. This note is included as part of other receivables in the Company's condensed consolidated financial statements. As of June 30, 2020 the balance of the note including interest was $51,716. Proforma information has not been presented as it has been deemed to be immaterial.