Acquisition (Tables)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Summary of Net Impact Due to Acquisition

The following table summarizes the net impact to cash for the proceeds of the Credit Agreement, debt assumed (Term Loan less the fair value of the Warrant and derivative liability), issuance of common shares, the impact to additional paid-in capital for the issuance of shares and fair value of the Warrant, derivative liability and transaction costs:

(in thousands)
Credit Agreement	$	5,000
Cash consideration	(4,000		)
Net proceeds from Credit Agreement	$	1,000
Term Loan	$	5,000
Debt discount associated with Warrant	(2,656		)
Derivative liability with additional warrant feature	(908		)
Net debt recorded with Acquisition	$	1,436
Common Stock (6,500,000 shares at $0.04 par)	$	260
Additional paid-in capital: issuance of shares	$	2,740
Additional paid-in capital: fair value of Warrant	2,656
Net increase to APIC with Acquisition	$	5,396

Preliminary Allocation of Purchase Price

The preliminary allocation of purchase price is as follows:

(in thousands)
Accounts receivable, net of allowance of $16	$	877
Inventory and other current assets	193
Fixed assets	$	275
Customer portal (existing technologies)	1,930
Customer relationships	$	4,151
Goodwill	766
Accounts payable and accrued expenses	$	(750	)
Deferred revenue	(442		)
Preliminary Purchase Price	$	7,000

Business Acquisition, Pro Forma Information

The following table provides unaudited pro forma results of operations for the three and six month periods ended June 30, 2015 and 2014as if the acquisition had been completed on the first day of our 2014 fiscal year.

(in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Pro forma revenues	$	7,662		$	10,596		$	15,750		$	21,788
Pro forma net loss from continuing operations	$	(2,749	)	$	(2,903	)	$	(5,856	)	$	(7,015	)