Note 4 – Acquisitions

On January 3, 2023, the Company completed its Asset Acquisition as described in Note 1. In accordance with the terms of the Asset Acquisition the Company paid cash consideration of approximately $0.65 million. The Asset Acquisition included approximately 12 employees, customer contracts, and certain operating liabilities. The Company accounted for the Asset Acquisition as a business combination (See Note 3). The initial purchase price may be adjusted as needed per the terms of the agreement. The allocation of purchase price, including any fair value the assets acquired and liabilities assumed as of the acquisition date has not been completed. The measurement period for the Asset Acquisition will be up to one year from the acquisition date.

The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed for the Amerigen 7 acquisition (in thousands):

The Company engaged an independent valuation specialist to conduct a valuation analysis of the identifiable intangible assets acquired by the Company with the objective of estimating the fair value of such assets as of January 3, 2023. The valuation specialist utilized the Income Approach, specifically the Multi-Period Excess Earnings Method, to value the existing customer relationship.