Subsequent Events

3 Months Ended

Mar. 31, 2016

16.

Subsequent Events

The Company evaluates and discloses subsequent events as required by ASC Topic No. 855, Subsequent Events. The Topic establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued.

On April 7, 2016, pursuant to the Share Purchase Agreement, dated as of March 8, 2016 , by and between Smith Micro Software, Inc. (the “Company”) and Birdstep Technology ASA (“Birdstep”), the Company completed its previously announced acquisition of 100% of the outstanding capital stock of Birdstep’s wholly owned Swedish subsidiary, Birdstep Technology AB (the “Acquisition”). Pursuant to the terms of the Share Purchase Agreement, the Company paid a net purchase price of $2 million in cash to Birdstep at the closing. Concurrently with the closing of the Acquisition, the Company entered into a Transitional Services Agreement with Birdstep. As a result of the Acquisition, Birdstep Technology AB has become a wholly-owned subsidiary of the Company. Approximately 21 employees will continue as employees of Birdstep Technology AB following the Closing. The Company has evaluated this acquisition and concluded that separate financial statements for Birdstep and pro forma financial information for the transaction are not required to be filed under SEC regulation S-X 8-04 and 8-05.

Subsequent events have been evaluated as of the date of this filing and no further disclosures were required.