Digital Turbine, Inc. Quarterly report pursuant to sections 13 or 15(d)

Quarterly report pursuant to sections 13 or 15(d)

Acquisitions/Purchase Price Accounting (Tables)

Acquisitions/Purchase Price Accounting (Tables)

6 Months Ended

Sep. 30, 2012

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		178
Fixed assets		140
Customer relationships		3,454
Developed technology		818
Trade names / Trademarks		143
Non-compete agreements		54
Goodwill		897
Current liabilities		(1,314	)
Long-term debt		(35	)

Purchase price	$	4,961

Amortization Period for Intangible Assets

The amortization period for the intangible assets is as follows:


		Remaining Useful Life
Customer relationships		10 years
Developed technology		10 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 September 30, 2012 are as follows:


	unaudited
Revenue	$	253
Cost of goods sold		146

Gross profit	$	107
Operating expenses		52

Income from operations		55
Financial expenses, net		(23	)
Provision for income tax		7

Net income	$	25

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
	Six Months Ended September 30,
	2012			2011
Revenues	$	5,118		$	8,490
Cost of goods sold		2,815			4,899

Gross profit		2,303			3,591
Operating expenses		7,276			4,826

Loss from operations		(4,973	)		(1,235	)
Non-operating expense		(1,109	)		(616	)

Loss before provision for income taxes		(6,082	)		(1,851	)
Provision for income taxes		34			35

Net loss	$	(6,116	)	$	(1,886	)

Basic and diluted loss per share	$	(0.01	)	$	(0.02	)

- 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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