ACQUISITION OF CORE ONCOLOGY'S PROSTATE BRACHYTHERAPY CUSTOMER BASE

6 Months Ended

Jun. 30, 2013

Asset Acquisition Disclosure [Abstract]

ACQUISITION OF CORE ONCOLOGY'S PROSTATE BRACHYTHERAPY CUSTOMER BASE

NOTE C – ACQUISITION OF CORE ONCOLOGY’S PROSTATE BRACHYTHERAPY CUSTOMER BASE

On February 17, 2012, we acquired Core Oncology’s prostate brachytherapy customer base.  This transaction has substantially increased our share of the iodine-125 segment of the prostate brachytherapy market.  In addition to the customer base, we also acquired certain packaging technologies, equipment related to the packaging technologies, and certain existing component inventory. We did not acquire Core’s facilities, manufacturing equipment or processes, or Core’s employees.

The total purchase price for the acquired assets is equal to one times the actual revenue generated from the acquired customers over the twelve-month period from September 2012 to August 2013 (the “Earn-Out Period”), in excess of a $2.5 million threshold amount.  We paid $5.3 million (including transaction costs) through June 30, 2013 for this transaction, primarily consisting of prepayment of a portion of the earn-out at closing in February 2012 plus subsequent earn-out payments.   Quarterly earn-out payments based on actual revenue recognized from the acquired customers are due through August 2013; however, based on our current estimates, we do not expect to make any additional earn-out payments. No such earn-out payments were made in the first six months of 2013.