Annual report pursuant to Section 13 and 15(d)

Security Networks Acquisition (Tables)

v2.4.0.8
Security Networks Acquisition (Tables)
12 Months Ended
Dec. 31, 2013
Security Networks Acquisition  
Schedule of purchase price allocation

Under the acquisition method of accounting, the Security Networks Purchase Price has been allocated to Security Networks’ tangible and identifiable intangible assets acquired and liabilities assumed based on their preliminary estimates of fair value as follows (amounts in thousands):

 

Cash

 

$

3,096

 

Trade receivables

 

1,305

 

Other current assets

 

1,677

 

Property and equipment

 

1,404

 

Subscriber accounts

 

307,800

 

Dealer network and other intangible assets

 

48,500

 

Goodwill

 

176,300

 

Holdback liability, current and non-current

 

(9,620

)

Deferred income tax liabilities

 

(4,108

)

Other current and non-current liabilities

 

(25,797

)

Fair value of consideration

 

$

500,557

 

Schedule of unaudited pro forma information

 

 

 

 

Year ended December 31,

 

 

 

2013

 

2012

 

 

 

(amounts in thousands, except
per share amounts)

 

As reported:

 

 

 

 

 

Net revenue

 

$

451,033

(a)

344,943

 

Net loss

 

(17,623

)

(16,776

)

 

 

 

 

 

 

Supplemental pro-forma:

 

 

 

 

 

Net revenue

 

$

515,792

 

420,716

(b)

Net loss (c)

 

(30,871

)

(70,491

)

 

(a)          As reported net revenue year ended December 31, 2013 reflects the negative impact of a $2,715,000 fair value adjustment that reduced deferred revenue acquired in the Security Networks Acquisition.

(b)         Pro-forma net revenue for the year ended December 31, 2012 reflects the negative impact of a $2,715,000 fair value adjustment that would have reduced deferred revenue acquired in the Security Networks Acquisition.

(c)          The pro-forma net loss from continuing operations amounts for the year ended December 31, 2013 include non-recurring acquisition costs incurred by the Company of $2,470,000.