On April 16, 2021, the Company acquired substantially all the assets related to Avast’s and its subsidiaries’ family safety mobile software business (the “Family Safety Mobile Business”) and certain specified assumed liabilities, which included all of the outstanding membership interests of Location Labs, LLC pursuant to a Membership Interest and Asset Purchase Agreement (the “Purchase Agreement”).

The following table summarizes the consideration paid for the acquisition of the Family Safety Mobile Business (unaudited, in thousands):

Fair value of assets acquired	$	75,626
Fair value of liabilities assumed		2,893
Total purchase price	$	72,733

Components of purchase price:
Cash	$	63,216
Common stock		8,381
Contingent consideration		1,136
Total purchase price	$	72,733

The Company’s preliminary allocation of the purchase price is summarized as follows (unaudited, in thousands):

Assets:
Cash	$	6,351
Accounts receivable		6,225
Prepaid expenses		513
Fixed assets		1,218
Intangible assets		33,500
Goodwill		27,819
Total assets	$	75,626
Liabilities:
Accounts payable	$	403
Accrued payroll and benefits		1,767
Accrued expenses		723
Total liabilities		2,893
Total purchase price	$	72,733

The purchase price allocation presented above has been prepared on a preliminary basis, and changes to the preliminary purchase price allocations may occur as additional information concerning asset and liability valuations are finalized.

The Purchase Agreement includes an earn-out provision that may result in additional future payments to Avast of up to $14.0 million. As of June 30, 2021, approximately $1.1 million in contingent consideration was included within “other accrued liabilities” in the accompanying consolidated balance sheet.

The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of the Family Safety Mobile Business. None of the goodwill is expected to be deductible for income tax purposes.

Approximately $6.0 million in revenues and $1.7 million in cost of revenues from the Family Safety Mobile Business are included in the consolidated statement of operations for the period from April 16, 2021 through June 30, 2021.

Unaudited pro forma results of operations for the three and six months ended June 30, 2021 and 2020 are included below as if the acquisition of the Family Safety Mobile business occurred on January 1, 2020. This summary of the unaudited pro forma results of operations is not necessarily indicative of what the Company’s results of operations would have been had the Family Safety Mobile Business been acquired at the beginning of 2020, nor does it purport to represent results of operations for any future periods.

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2021			2020		2021			2020
	(unaudited, in thousands, except per share amounts)					(unaudited, in thousands, except per share amounts)
Revenues	$	17,146		$	22,085	$	36,532		$	44,559
Net income (loss)		(5,396	)		409		(10,092	)		1,485
Earnings (loss) per share:
Basic	$	(0.10	)	$	0.01	$	(0.21	)	$	0.04
Diluted	$	(0.10	)	$	0.01	$	(0.21	)	$	0.04