Acquisitions (Tables)

9 Months Ended

Apr. 30, 2020

CGC Technology

Business Acquisition [Line Items]

Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed in connection with the CGC acquisition:

	Purchase Price Allocation (1)			Measurement Period Adjustments		Purchase Price Allocation (as adjusted)
Payable in cash	$	12,075,000		—		$	12,075,000
Payable in common stock issued by Comtech	11,575,000			—		11,575,000
Preliminary purchase price at fair value	$	23,650,000		—		$	23,650,000
Preliminary allocation of aggregate purchase price:
Cash and cash equivalents	$	160,000		—		$	160,000
Current assets	3,336,000			1,054,000		4,390,000
Property, plant and equipment	1,457,000			—		1,457,000
Operating lease assets	924,000			—		924,000
Deferred tax assets, non-current	588,000			487,000		1,075,000
Contract liabilities	—			(6,890,000	)	(6,890,000		)
Accrued warranty obligations	(1,000,000		)	—		(1,000,000		)
Other current liabilities	(7,060,000		)	862,000		(6,198,000		)
Non-current liabilities	(1,329,000		)	—		(1,329,000		)
Net tangible liabilities at preliminary fair value	$	(2,924,000	)	(4,487,000	)	$	(7,411,000	)
Identifiable intangibles, deferred taxes and goodwill:									Estimated Useful Lives
Technology	$	5,000,000		—		$	5,000,000		20 years
Customer relationships	7,000,000			(500,000	)	6,500,000			15 years
Trade name	800,000			—		800,000			5 years
Deferred tax liabilities	(2,176,000		)	85,000		(2,091,000		)
Goodwill	15,950,000			4,902,000		20,852,000			Indefinite
Preliminary allocation of aggregate purchase price	$	23,650,000		—		$	23,650,000

⁽¹⁾ As reported in the Company's Quarterly Report on Form 10-Q for the six months ended January 31, 2020.