Acquisition (Tables)

12 Months Ended

Dec. 31, 2015

Schedule 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, as of the origination date:



(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 allocation of purchase price is as follows:



(in thousands)
Accounts receivable, net of allowance of $2	$	918
Inventory and other current assets	117
Fixed assets	123
Customer portal (existing technologies)	4,151
Customer relationships	2,097
Goodwill	633
Accounts payable and accrued expenses	(743		)
Deferred revenue	(296		)
Purchase Price	$	7,000

Business Acquisition, Pro Forma Information

The following table provides unaudited pro forma results of operations for the years ended December 31, 2015 and 2014, as if the acquisition had been completed on the first day of our 2014 fiscal year.



	December 31,
(in thousands)	2015			2014
Pro forma revenues	$	34,996		$	44,087

Pro forma net loss from continuing operations	$	(10,847	)	$	(12,372	)