Note 4 – Acquisitions

On January 3, 2023, the Company completed its Business Combination as described in Note 1. In accordance with the terms of the Business Combination, the Company paid cash consideration of approximately $0.65 million. The Business Combination included approximately 12 employees, customer contracts, and certain operating liabilities. The initial purchase price may be adjusted as needed per the terms of the agreement. The measurement period for the Business Combination 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.