2019 Acquisition (Tables)

9 Months Ended

Sep. 30, 2019

Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date

The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at acquisition date:

	Total
	(in thousands)
Inventory	$	297
Goodwill		745
Intangible assets		333
Net assets acquired	$	1,375

Amounts Assigned to Goodwill and Major Intangibles Asset Classifications

The amounts assigned to goodwill and major intangible asset classifications were as follows:

	Amount allocated		Useful life (in years)
	(in thousands)
Goodwill	$	745	n.a.
Trademarks		310	5
Transition services agreement		11	< 1
Non-competition agreement		12	3
Total	$	1,078

Unaudited Pro Forma Information

The acquisition of the Aussie Health Assets is reflected in the following unaudited pro forma information as if the acquisition had been effective on January 1, 2018.

	Three months ended September 30,			Three Months Ended September 30,			Nine months ended September 30,			Nine Months Ended September 30,
	2018			2019			2018			2019
	(in thousands)						(in thousands)
Net revenue as reported	$	24,672		$	40,603		$	53,576		$	88,817
Aussie Health net revenue	$	485		$	1,350		$	512		$	1,759
Net revenue pro forma	$	25,157		$	41,953		$	54,088		$	90,576

Operating loss as reported	$	(4,707	)	$	(10,413	)	$	(21,772	)	$	(23,887	)
Aussie Health operating income	$	90		$	243		$	85		$	310
Operating loss pro forma	$	(4,617	)	$	(10,170	)	$	(21,687	)	$	(23,577	)