ACQUISITION OF GVR TRADE S.A.

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

ACQUISITION OF GVR TRADE S.A.

ACQUISITION OF GVR TRADE S.A.

On July 6, 2016, we acquired all of the issued and outstanding capital stock of GVR Trade S.A. The purchase price, consisting of $661,000 in cash and 125,000 shares of our common stock with a fair value of $545,000, based on a per share price of $4.36 as of the date of acquisition, was approximately $1.2 million. At the time of acquisition, we incurred approximately $92,000 of acquisition related expenses. GVR is a wholly owned direct subsidiary of Resonant.

As of the acquisition date we recorded goodwill of approximately $824,000 which represented the excess of the purchase price over the fair value of the assets acquired. The fair value for the assets acquired and liabilities assumed were based upon independent calculations and valuations. We review goodwill for impairment annually and whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable.

The acquisition was not material to our condensed consolidated financial statements and we have included the financial results of the acquired business in our condensed consolidated financial statements from the date of acquisition. Pro forma historical results of operations of this business acquisition during the three and nine months ended September 30, 2016 have not been presented as it is not material to our condensed consolidated statements of comprehensive loss.