Merger (Tables)

6 Months Ended

Jun. 30, 2017

The preliminary allocation of purchase price is as follows:



(in thousands)
Cash	$	1,936
Accounts receivable	3,134
Inventory and other assets	1,208
Fixed assets	1,032
Technology	4,200
Customer relationships	3,400
Trade name/trademark	200
Non-compete agreements	10
Goodwill	6,544
Accounts payable	(2,945		)
Accrued expenses and other liabilities	(4,617		)
Line of credit	(4,684		)
Capital leases	(334		)
Deferred revenue	(200		)
Subordinated promissory note	(2,092		)
Preliminary Purchase Price	$	6,792

Methods Used to Determine Fair Value of Acquired Intangibles

The method used to determine the fair value of the intangible assets acquired and their estimated useful lives are as follows:



Intangible Asset	Fair Value Method	Estimated Useful Life
Technology	Income Approach, Relief from Royalty	6 years
Customer relationships	Income Approach, Multi-Period Excess Earnings	8 years
Trade name/trademark	Income Approach, Relief from Royalty	9 months
Non-compete agreements	Income Approach Lost Profits Method	1 year

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, 2017 and 2016, as if the Merger had been completed on the first day of the Company's 2016 fiscal year.



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2017			2016			2017			2016
Pro forma revenues	$	10,884		$	12,426		$	24,034		$	26,390

Pro forma net loss from continuing operations	$	(5,768	)	$	(7,884	)	$	(11,575	)	$	(15,504	)