Digital Turbine, Inc. Annual report pursuant to section 13 and 15(d)

Annual report pursuant to section 13 and 15(d)

Acquisitions/Purchase Price Accounting (Tables)

Acquisitions/Purchase Price Accounting (Tables)

12 Months Ended

Mar. 31, 2013

Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition.


	Unaudited
Cash	$	59
Accounts receivable		567
Prepaid expenses and other assets		86
Customer relationships		3,454
Developed technology		818
Trade names / Trademarks		143
Non-compete agreements		54
Goodwill		1,067
Current liabilities		(1,222	)
Long-term debt		(35	)

Purchase price	$	4,991

Amortization Period for Intangible Assets

The amortization period for the intangible assets is as follows:


	Remaining Useful Life
Customer relationships		10 years
Developed technology		5 years
Trade names / Trademarks		5 years
Non-compete agreements		4 years
Goodwill		Indefinite

Targets Combined Operating Results

The Targets’ combined operating results from the acquisition date to March 31, 2013 are as follows:


	Unaudited
Revenue	$	3,031
Cost of goods sold		1,118

Gross profit	$	1,913
Operating expenses		1,255

Income from operations		658
Non-operating expenses, net		10
Provision for income tax		34

Net income	$	614

Pro Forma Financial Information

The pro forma financial information of the Company’s consolidated operations if the acquisition of the Targets had occurred as of April 1, 2011 is presented below.


	Unaudited Twelve Months Ended March 31,
	2013			2012
Revenues	$	8,689		$	16,548
Cost of goods sold		4,188			10,138

Gross profit		4,501			6,410
Operating expenses		15,234			23,539

Loss from operations		(10,733	)		(17,129	)
Non-operating expense		1,755			13,828

Loss before provision for income taxes		(12,488	)		(30,957	)
Provision for income taxes		83			118

Net loss	$	(12,571	)	$	(31,075	)

Basic and diluted loss per share	$	(0.71	)	$	(3.14	)

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

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