On May 18, 2020, Intricon Pte. Ltd. (“Buyer”), a wholly-owned subsidiary of the Company, acquired all of the outstanding shares of Emerald Medical Services Pte., Ltd., a Singapore company (“EMS”) for a total purchase price of $11,815. EMS, based in Singapore, is a provider of joint development medical device manufacturing services for complex catheter applications.

In addition, the Company has a 54% ownership interest in Emerald Extrusion Services LLC. (“EES), based in California. Based on this controlling financial interest, the Company has consolidated this entity. The remaining ownership is accounted for as a non-controlling interest and reported as part of equity in the consolidated condensed balance sheets.

We accounted for the acquisition in accordance with ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair value on the acquisition date. The Company has up to one year from the acquisition date to finalize the purchase price allocation. During the period ended March 31, 2021, the Company recorded certain adjustments related to changes in valuation estimates of accounts receivable, inventory and deferred taxes as well as changes to the non-controlling interest balance. These purchase accounting adjustments resulted in a $90 increase to Goodwill during the 2021 first quarter. The Company expects the final purchase price allocation to be determined in May 2021. The estimated purchase price allocation of the fair value of the assets acquired and liabilities assumed as of March 31, 2021 is included in the table below.



Current assets	$	3,161
Property, plant and equipment		360
Intangible assets		6,400
Goodwill		4,253
Noncurrent assets		169
Current liabilities		(1,105)
Noncurrent liabilities		(1,423)
Total consideration paid	$	11,815

A portion of the purchase price is in the form of a contingent consideration liability calculated using a scenario-based method utilizing various level 3 inputs including revenue volatility, weighted average cost of capital and discount rate percentages. Level 3 is a fair value measure in which there are no observable inputs used to value an asset or liability and the fair value is determined based on modeling and the use of management estimates and assumptions. The key valuation assumptions included forecasts of future revenues and the selection of the discount rate. The liability for contingent consideration is subject to fair value adjustments each reporting period that will be recognized through the consolidated condensed statement of operations within other operating expenses.

Quantitative information about Level 3 inputs for fair value measurement of the contingent consideration liability are detailed in “Note 2: Business Combination” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. There have be no significant changes to these inputs as of March 31, 2021. Significant increases or decreases in these inputs in isolation could result in a significant impact on the fair value measurement.

The reconciliation of the contingent consideration liability measured and carried at fair value on a recurring basis is as follows:


Carrying amount at December 31, 2020	$	3,574
Change in fair value		35
Carrying amount at March 31, 2021	$	3,609

Our consolidated condensed statements of operations for the three months ended March 31, 2021 include revenues of $3,802 and net income of $249, respectively, attributable to the acquiree.