Merger (Tables)

12 Months Ended

Dec. 31, 2017

The allocation of purchase price is as follows:



(in thousands)	December 31, 2017
Cash	$	1,936
Accounts receivable	3,128
Inventory and other assets	1,209
Fixed assets	1,041
Technology	4,200
Customer relationships	3,400
Trade name/trademark	200
Non-compete agreements	10
Goodwill	8,126
Accounts payable	(2,945		)
Accrued expenses and other liabilities (including deferred income tax liability)	(6,789		)
Line of credit	(4,684		)
Capital leases	(334		)
Deferred revenue	(200		)
Subordinated promissory note	(1,917		)
Subordinated promissory note, discount	411
Preliminary Purchase Price	$	6,792

Schedule of Estimated Useful Lives of Intangible Assets Acquired

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
Portal (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

Schedule of Pro Forma Unaudited Information

The following table provides unaudited pro forma results of operations for the twelve months ended December 31, 2017 and 2016, as if the Merger had been completed on the first day of our 2016 fiscal year.



(in thousands)	2017			2016
Pro forma revenues	$	63,849		$	70,990
Pro forma loss from continuing operations	$	(18,103	)	$	(24,129	)