XML 42 R27.htm IDEA: XBRL DOCUMENT v3.20.4
3. ACQUISITION (Tables)
 12 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Total purchase consideration

The acquisition date fair value of consideration transferred consisted of the following:

 

Cash at closing (1)   $ 353,000  
Value of Forward's common stock (2)     370,000  
Fair value of contingent earnout consideration (3)     90,000  
    $ 813,000  

 

  (1) Cash paid by Forward at closing.

 

  (2) Forward issued 300,000 shares of its common stock valued at $1.23 per share, which represents the August 17, 2020 closing price of $1.37 per share, less an estimated 10% reduction in fair value related to restrictions that limit their marketability for a period of six months.

 

  (3) Fair value of the contingent consideration is measured using the Black-Scholes option pricing method. Contingent consideration is to be paid in cash only upon Kablooe meeting certain earnings milestones over a five-year period.
Assets acquired and liabilities assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed on the acquisition date:

 

Cash   $ 31,000  
Accounts receivable     96,000  
Customer relationships (8 yr life)     340,000  
Trademark (15 yr life)     110,000  
Property and equipment     9,000  
Other assets     9,000  
Total identifiable assets acquired     595,000  
Accounts payable     (22,000 )
Accrued liabilities     (135,000 )
Deferred revenue     (46,000 )
Debt     (170,000 )
Total liabilities assumed     (373,000 )
Net identifiable assets acquired     222,000  
Goodwill     591,000  
Net assets acquired   $ 813,000