Acquisition

9 Months Ended

Sep. 30, 2013

Acquisition [Abstract]

Acquisition

Note 2

Acquisition

On July 1, 2013, PhotoMedex’ wholly-owned subsidiary, Radiancy, Inc., completed the acquisition of 100% of the shares of LK Technology Importaçăo E Exportaçăo LTDA (“LK”), a privately-held distributor in Brazil.

LK brings to PhotoMedex all required licenses, authorizations and permits to immediately begin its consumer business operating locally. LK was founded in 2003 and is based in Sao Paulo. LK has been operating for several years selling Radiancy’s professional line of products in Brazil. The local manager of LK will remain in his position.

The total consideration was $181, consisting of $41 cash down payment, $59 to be paid on the $100 consideration and $81 (a contingent consideration component) liability for an estimated amount to be due for the profit to be earned on the remaining inventory at acquisition date.

The fair value of the assets acquired and liabilities assumed were based on management estimates. Based on the initial purchase price allocation, the following table summarizes the fair value amounts of the assets acquired and liabilities assumed at the date of the acquisition:

Cash and cash equivalents	$	125
Accounts receivable		1
Inventories		20
Prepaid expenses and other current assets		2
Total assets acquired at fair value		148
Accounts payable		(75	)
Accrued compensation and related expenses		(2	)
Other accrued liabilities		(11	)
Total liabilities assumed		(88	)
Net assets acquired	$	60

The purchase price exceeded the fair value of the net assets acquired by $121, which was recorded as goodwill.

The consolidated results of operations do not include any revenues or expenses related to the LK business on or prior to July 1, 2013, the consummation date of the acquisition. Assuming the acquisition of LK had occurred on January 1, 2012, the impact on the Company’s results for the nine months ended September 30, 2013 and 2012 would have been immaterial. However this determination does not purport to be indicative of the results of operations which would have actually resulted had the acquisition occurred on January 1, 2012, nor to be indicative of future results of operations.