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)

9 Months Ended

Dec. 31, 2013

M.D.G Logia Holdings Ltd

Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the 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

Mirror Image International Holdings Pvt Ltd

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	$	514
Accounts receivable		2,809
Prepaid expenses and other assets		896
Property, Plant and Equipment		300
Customer relationships		652
Developed technology		5,820
Library		300
Trade names / Trademarks		54
Goodwill		1,182
Accounts payable		(1,151	)
Accrued liabilities		(2,891	)
Accrued compensation		(345	)

Purchase price	$	8,140

Amortization Period for Intangible Assets

The amortization period for the intangible assets is as follows:


	Remaining Useful Life
Customer relationships		14 years
Developed technology		5 years
Trade names / Trademarks		5 years
Library		5 years
Goodwill		Indefinite

Targets Combined Operating Results

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


	Unaudited
Revenue	$	14,890
Cost of goods sold		10,601

Gross profit		4,289
Operating expenses		3,656

Income from operations		633
Non-operating (income) / expense, net		(17	)
Provision for income tax		194

Net income	$	456

Pro Forma Financial Information

The pro forma financial information of the Company’s consolidated operations if the acquisition of MIA had occurred as of April 1, 2012 is presented below.


	Unaudited Nine Months Ended December 31,
	2013			2012
Revenues	$	15,374		$	14,470
Cost of goods sold		10,921			7,870

Gross profit		4,453			6,600
Operating expenses		3,833			15,865

Income/(loss) from operations		620			(9,265	)
Non-operating (income) / expense, net		(5	)		1,626

Income/(loss) before provision for income taxes		625			(10,891	)
Provision for income tax (income) / expense, net		(53	)		105

Net income/(loss)	$	678		$	(10,996

Basic and diluted earnings per share	$	0.03		$	(0.63	)

- 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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