BUSINESS COMBINATION

9 Months Ended

Sep. 30, 2021

BUSINESS COMBINATION

BUSINESS COMBINATION

NOTE N — BUSINESS COMBINATION

On January 7, 2020 the Company acquired all of the outstanding shares of Aircraft Composite Technologies, Inc. (“ACT”), a Florida corporation located in Miami, Florida, for $17.0 million in cash. The results of ACT operations have been included in the condensed consolidated financial statements since the acquisition date. All assets and liabilities of ACT were recorded at their fair market value, and to the extent that the purchase cost exceeded the fair market value of the net assets, that excess was recorded as goodwill, all of which is deductible for federal income tax purposes. The goodwill is attributable to the general reputation of the business and the collective experience of ACT’s management and employees. This business operates as part of our Tech Ops segment. ACT’s revenues and income from operations for the three months ended September 30, 2020 were $1.3 million and $0.1 million, respectively, and from January 7, 2020 through September 30, 2020 were $5.3 million and $1.2 million, respectively. The purchase price for ACT was allocated as follows (in thousands):

	Acquisition
	Date
	Fair Values
Accounts receivable	$	1,442
Deposits, prepaid expenses, and other current assets		22
Property and equipment		381
Other intangible assets		10,096
Goodwill		6,002
Accounts payable		(134)
Accrued expenses		(833)
Total purchase price	$	16,976

The intangible assets included above consist of the following (in thousands):

	Fair Value
Trademark and trade name (indefinite lived)	$	200

	Fair Value
FAA part 145 certificate (indefinite lived)	$	796

	Useful Life In
	Years	Fair Value
Customer relationships	10	$	9,100

The acquisition of ACT did not have a material impact on the consolidated results of operations for the three- and nine-month period ended September 30, 2020.