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NOTE 4 - MATERIAL ACQUISITIONS | 12 Months Ended
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Dec. 31, 2011
Business Combination Disclosure [Text Block] | NOTE 4 – MATERIAL ACQUISITIONS Material acquisitions completed in 2011 On November 7, 2011, we completed our acquisition of RH. We have determined that this acquisition was material. Accordingly, as required under ASC 805-10-50, Business Combinations – Disclosure, we are providing below certain additional disclosures relating to this acquisition. The total purchase price for the above business is as follows (in thousands):
Cash |  | $ | 28,210 |
Equipment-related debt |  |  | 3,227 |
Promissory note |  |  | 9,000 |
Total combined purchase price |  | $ | 40,437 |
Under the acquisition method of accounting, the determination of the net tangible and intangible assets acquired and liabilities assumed is based on the estimated fair values of the acquired assets and liabilities assumed as of the date of acquisition. The following table summarizes the preliminary fair value determination (in thousands).
Working capital |  | $ | 2,909 |
Assets held for sale |  |  | 2,300 |
Property and equipment |  |  | 30,996 |
Joint venture interests |  |  | 952 |
Goodwill |  |  | 3,918 |
Other assets |  |  | 279 |
Other liabilities |  |  | (917 | )
|  | $ | 40,437 |
We have estimated the fair value of working capital which consists of $3.6 million of cash, $8.3 million of accounts receivable, $900,000 of prepaid expenses, $9.2 million of accounts payable and accrued expenses and 700,000 of payables to non-consolidated joint ventures. We have estimated the fair value of certain assets that we agreed to sell shortly after acquisition and have classified their fair value as assets held for sale. We expect to complete this sale by the end our first quarter 2012 for the agreed upon price of $2.3 million. We have estimated the fair value of tangible assets acquired and liabilities assumed. Some of these estimates are subject to change, particularly those estimates relating to the valuation of property and equipment. The final fair value determination will be based upon the fair value of assets and liabilities assumed, and in these cases, we will use the services of an external valuation firm to assist us in determining the final fair values which we expect to have completed during our second quarter ended June 30, 2012. The revenue and earnings of RH included in our consolidated statement of operations from the respective actual acquisition date to the period ended December 31, 2011 are as follows (in thousands):
Net revenue |  | $ | 11,471 |
Net income |  |  | 683 |
The following unaudited pro-forma financial information for the years ended December 31, 2011 and 2010 represents the combined results of operations of us and RH as if RH’s acquisition had occurred on a single date of January 1, 2010. The unaudited pro-forma financial information does not necessarily reflect the results of operations that would have occurred had the entities comprising RH constituted a single entity during such periods (in thousands).
|  | Years Ended |
|  | December 31, |
|  | 2011 |  |  | 2010 |
Net revenue |  | $ | 695,136 |  |  | $ | 656,457 |
Net loss |  |  | (11,160 | ) |  |  | (77,965 | )
Pro-forma net loss per share |  |  | (0.29 | ) |  |  | (2.12 | )
Material acquisitions completed in 2010 On October 1, 2010, we completed our acquisition of Image Medical Corporation, parent of eRAD, Inc., and our acquisition of five imaging centers in Northern New Jersey and a 50% equity interest in a sixth center from Progressive Health, LLC and certain affiliates and related entities. We determined that each of these acquisitions was material. Accordingly, as required under ASC 805-10-50, we are providing below certain additional disclosures on an aggregate basis relating to these two acquisitions. The total purchase price for the above businesses (collectively, the “Group”) is as follows (in thousands):
Cash |  | $ | 25,636 |
Fair value of warrant issued |  |  | 306 |
Promissory note |  |  | 2,250 |
Total combined purchase price for the Group |  | $ | 28,192 |
Under the acquisition method of accounting, the determination of the Group’s net tangible and intangible assets acquired and liabilities assumed is based on the fair values of the acquired assets and liabilities assumed as of the date of each individual acquisition. The following table summarizes the final fair value determination (in thousands).
Current assets |  | $ | 1,903 |
Property and equipment, net |  |  | 3,585 |
Identifiable intangible assets |  |  | 2,550 |
Goodwill |  |  | 23,995 |
Current liabilities |  |  | (2,426 | )
Capital lease obligations and other |  |  | (1,415 | )
|  | $ | 28,192 |
Identifiable intangible assets consist of the following (in thousands):
|  |  |  | Amortization |  | Annual |
|  | Fair Value |  | Period |  | Amortization |
Trade Name |  | $ | 1,500 |  | Indefinite |  | Not applicable |
Customer Relationships |  |  | 250 |  | 5 Years |  |  | 50 |
Developed Technology |  |  | 800 |  | 5 Years |  |  | 160 |
|  | $ | 2,550 |  |  |  | $ | 210 |
Intangible assets are being amortized using the straight-line method, considering the pattern in which the economic benefits of the intangible assets are consumed.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51, 52 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1500-128463 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e7000-128479 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6927-128479 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e7008-128479 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1490-128463 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6996-128479 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Appendix F -Paragraph F4 -Subparagraph e Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1383-128463 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1392-128463 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1497-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph 67-73 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1524-128463 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 88-16 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1486-128463 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472 + Details
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