Quarterly report pursuant to Section 13 or 15(d)

Business Acquisitions (Tables)

v3.23.3
Business Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of total consideration
The following table summarizes the total consideration for the MFG Purchase:
April 22, 2022
Cash consideration $ 2,700 
Holdback consideration 300 
Total consideration $ 3,000 
The following table summarizes the total consideration for the Linear AMS Purchase:
May 9, 2022
Cash consideration $ 6,090 
Holdback consideration 800 
Earnout consideration liability 2,900 
Total consolidation $ 9,790 
Schedule of recognized identified assets acquired and liabilities assumed The following table summarizes the allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed:
April 22, 2022
Assets acquired:
Goodwill $ 1,954 
Intangible assets 1,604 
Other assets 15 
Total assets acquired 3,573 
Liabilities assumed:
Deferred revenue 573 
Total liabilities assumed 573 
Net assets acquired $ 3,000 
The following table summarizes the fair values of assets acquired and liabilities assumed as of the acquisition date:
May 9, 2022
Assets acquired:
Cash and cash equivalents $ 29 
Accounts receivable 1,117 
Inventory 214 
Prepaid expenses 34 
Security deposits 92 
Property and equipment, net 2,086 
Right-of-use assets 2,131 
Goodwill 2,497 
Intangible assets, net 4,199 
Total assets acquired 12,399 
Liabilities assumed:
Accounts payable 308 
Accrued expenses and other liabilities 170 
Operating lease liability 2,131 
Total liabilities assumed 2,609 
Net assets acquired $ 9,790 
Schedule of finite-lived intangible assets
The estimated useful lives of the identifiable intangible assets acquired is as follows:
Gross Value Estimated Life (in years)
Customer relationships $ 264  10
Trade name 240  10
Acquired software platform 910  10
Customer list 190  3
Total intangible assets $ 1,604 
The estimated useful lives of the identifiable intangible assets acquired is as follows:
May 9, 2022 Estimated Life (in years)
Customer relationships $ 2,822  10
Trade name 647  10
Noncompetition agreement 52  2
Favorable operating lease 699  4
Unfavorable operating lease (21) 4
Total intangible assets $ 4,199 
Intangible assets consisted of the following as of September 30, 2023:
Gross carrying amount Accumulated amortization Intangible assets, net Weighted average amortization period (in years)
Customer relationships $ 3,086  $ (437) $ 2,649  10
Trade name 987  (140) 847  10
Acquired software platform 910  (129) 781  10
Customer lists 190  (90) 100  3
Noncompetition agreement 52  (37) 15  2
Unfavorable operating lease (21) 8  (13) 4
Total intangible assets, net $ 5,204  $ (825) $ 4,379 
During the three and nine months ended September 30, 2023, the Company wrote off $481 of intangible assets related to the favorable operating lease. There were no intangible assets written off during the three and nine months ended September 30, 2022.
Intangible assets consisted of the following as of December 31, 2022:
Gross carrying amount Accumulated amortization Intangible assets, net Weighted average amortization period (in years)
Customer relationships $ 3,086  $ (206) $ 2,880  10
Trade name 987  (66) 921  10
Acquired software platform 910  (61) 849  10
Customer lists 190  (42) 148  3
Noncompetition agreement 52  (17) 35  2
Favorable operating lease 699  (117) 582  4
Unfavorable operating lease (21) 4  (17) 4
Total intangible assets, net $ 5,903  $ (505) $ 5,398 
Schedule of asset acquisition The following table summarizes the fair values of assets acquired as of the acquisition date:
April 13, 2022
Assets acquired:
Intangible assets $ 100 
Total assets acquired $ 100