Business Combinations (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Allocation of Purchase Consideration

The purchase consideration of $33.5 million was allocated as follows:



	Amount
	(in thousands)
Cash and cash equivalents	$	2,643
Accounts receivable	1,337
Other current assets	140
Property and equipment	114
Intangible assets	13,900
Other assets	34
Total assets acquired	$	18,168
Accounts payable	173
Accrued expenses and other liabilities	1,787
Deferred revenue	1,407
Deferred tax liability, net	1,396
Total liabilities assumed	$	4,763
Goodwill	$	20,092
Total purchase consideration	$	33,497

The fair values of the assets acquired and liabilities assumed by major class were recognized as follows:



	Amount
	(in thousands)
Cash	$	1
Property and equipment	3
Acquired intangible assets	178
Liabilities assumed	(69		)
Goodwill	2,486
Total purchase consideration	$	2,599

The purchase consideration of $18.6 million was allocated as follows:



	Amount
	(in thousands)
Cash and cash equivalents	$	87
Accounts receivable	409
Inventories	56
Prepaid expenses and other current assets	124
Property and equipment	52
Intangible assets	5,580
Total assets acquired	$	6,308
Accounts payable	$	366
Accrued expenses and other liabilities	394
Deferred revenue	212
Total liabilities assumed	$	972
Goodwill	$	13,223
Total purchase consideration	$	18,559

Components of Identifiable Intangible Assets Acquired and Their Estimated Useful Lives

The following table sets forth the components of the identifiable intangible assets acquired and their estimated useful lives as of the acquisition date:



	Cost		Useful Life
	(in thousands)		(years)
Customer relationships	$	4,300	7.0
Developed technology	9,200		7.0
Trade name	400		5.0
Total	$	13,900

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the acquisition date:



	Cost		Useful Life
	(in thousands)		(years)
Customer relationships	$	3,890	10.0
Developed technology	1,650		5.0
Trade name	40		2.0
Total	$	5,580

Schedule of Pro Forma Information

The following unaudited pro forma information presents the combined results of operations as if the Retrofit Acquisition had been completed on January 1, 2017, the beginning of the comparable annual reporting period prior to the acquisition. The unaudited pro forma results include adjustments primarily related to the following: (i) interest expense related to the legacy debt of Retrofit that was not acquired; (ii) amortization of the acquired intangible assets; (iii) recognition of post-acquisition stock-based compensation expense; (iv) the inclusion of acquisition-related costs as of the earliest period presented; and (v) the associated tax impact of the acquisitions and these unaudited pro forma adjustments.



	Year Ended December 31,
	2018			2017
	(in thousands)
Revenue	$	69,939		$	34,261
Net loss	$	(35,002	)	$	(21,621	)

The following unaudited pro forma information presents the combined results of operations as if the myStrength Acquisition had been completed on January 1, 2018, the beginning of the comparable prior annual reporting period. The unaudited pro forma results include adjustments primarily related to the following: (i) interest expense related to the legacy debt of myStrength that was not acquired; (ii) amortization of the acquired intangible assets; (iii) fair value adjustment for deferred revenue; (iv) the inclusion of acquisition-related costs as of the earliest period presented; and (v) the associated tax impact of the acquisitions and these unaudited pro forma adjustments.



	Year Ended December 31,
	2019			2018
	(in thousands)
Revenue	$	170,795		$	72,375
Net loss	$	(53,934	)	$	(38,531	)