Acquisition

On February 28, 2018, we closed on the purchase of substantially all of the assets of WattMaster Controls, Inc., (collectively, “WattMaster”). The assets acquired consisted primarily of intellectual property, receivables, inventory and fixed assets. The Company also hired substantially all of the WattMaster employees. These assets and workforce will allow us to accelerate the development of our own electronic controllers for air distribution systems. We funded the business combination with available cash of $6.0 million. We have included the results of WattMaster's operations in our consolidated financial statements beginning March 1, 2018.

We have not completed the accounting for the business combination. We are in the process of completing an independent appraisal of the fair value of the assets acquired. The estimates of fair value reflected as of February 28, 2018 are subject to change and such changes could be material. We expect to complete this process prior to our quarter end of June 30, 2018. We have preliminarily estimated the fair value of the assets acquired and liabilities assumed as follows (in thousands):



Accounts receivable	$	1,073
Inventories	1,442
Property, plant and equipment	133
Goodwill	3,677
Assumed current liabilities	(325		)
Consideration paid	$	6,000

Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill represents a premium paid to acquire the skilled workforce of the business acquired. We expect that all of the goodwill will be deductible for federal income tax purposes.