Quarterly report pursuant to Section 13 or 15(d)

Acquisition and Discontinued Operations (Tables)

v3.7.0.1
Acquisition and Discontinued Operations (Tables)
6 Months Ended
Jun. 30, 2017
Business Combinations [Abstract]  
Schedule of Assets and Liabilities Acquired
Under the acquisition method of accounting, the total estimated purchase consideration was allocated to the acquired tangible and intangible assets and assumed liabilities based on their estimated fair values as of the acquisition date. Following was the allocation of the purchase consideration:

Cash and cash equivalents
 
$
17,000
 
Accounts receivable
   
21,000
 
Inventory
   
379,000
 
Prepaid and other assets
   
51,000
 
Equipment
   
1,000
 
Identifiable intangible assets:
       
  Trademarks (5 year estimated useful life)
   
99,000
 
  Customer base (6 year estimated useful life)
   
37,000
 
  Developed technology (4 year estimated useful life)
   
1,864,000
 
Total identifiable intangible assets
   
2,000,000
 
Goodwill
   
430,000
 
Accounts payable
   
(118,000
)
Accrued and other liabilities
   
(175,000
)
Non-controlling interest
   
(29,000
)
Purchase price
 
$
2,577,000
 
Schedule of Intangible rights acquired
Intangible assets acquired consisted of the following as of December 31, 2016:
 
Trademarks
 
$
99,000
 
Customer base
   
37,000
 
Developed technology
   
1,864,000
 
Total
   
2,000,000
 
Less accumulated amortization
   
(148,264
)
Balance at December 31, 2016
 
$
1,851,736
 
Schedule of Operation and Assets and Liabilities Related to Discontinued Operations
Assets and liabilities related to the discontinued operations of BDI are approximately as follows as of June 30, 2017 and December 31, 2016:
 
   
June 30, 2017
   
December 31, 2016
 
 Current assets:
           
   Accounts receivable
 
$
1,000
   
$
5,000
 
   Inventories
   
-
     
416,000
 
   Prepaid expenses
   
-
     
66,000
 
Total current assets
 
$
1,000
   
$
487,000
 
                 
Equipment and furnishings, net
 
$
-
   
$
36,000
 
Intangible assets, net
   
-
     
2,281,000
 
Deposit
   
-
     
37,000
 
Total noncurrent assets
 
$
-
   
$
2,354,000
 
                 
Current liabilities:
               
   Accounts payable
 
$
99,000
   
$
174,000
 
   Accrued expenses
   
28,000
     
85,000
 
   Deferred revenue
   
137,000
     
-
 
Total current liabilities
 
$
264,000
   
$
259,000
 
 
Summarized results of the discontinued operation are as follows for the three and six months ended June 30, 2017:
 
   
Three Months
   
Six Months
 
             
Sales
 
$
17,000
   
$
30,000
 
Cost of sales
   
3,000
     
5,000
 
  Gross margin
   
14,000
     
25,000
 
Operating expenses
   
347,000
     
1,001,000
 
  Operating loss
   
(333,000
)
   
(976,000
)
Escrow forfeiture gain
   
135,000
     
135,000
 
Impairment (loss)
   
(50,000
)
   
(2,754,000
)
                 
Loss from discontinued operations
 
$
(248,000
)
 
$
(3,595,000
)