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Business Combinations (Tables)

3 Months Ended

Mar. 31, 2020

A summary of the purchase price is as follows (in thousands):

Cash paid at closing	$	7,920
Cash held in escrow		1,080
Total consideration paid	$	9,000

Summary of Preliminary Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands):

Accounts and unbilled receivable, net	$	216
Prepaid and other current assets		3
Operating lease right-of-use assets		30
Deferred tax assets		71
Goodwill		4,657
Intangible assets		4,340
Accounts payable and accrued liabilities		(7	)
Deferred revenue		(280	)
Operating lease liabilities		(30	)
Net assets acquired	$	9,000

Summary of Preliminary Components of Identifiable Intangible Assets and Estimated Useful Lives

The following table sets forth the preliminary components of identifiable intangible assets and their estimated useful lives as of the acquisition date (in thousands):

	Preliminary Fair value		Useful life
Customer relationships	$	2,100	9 years
Developed technology		2,100	4 years
Non-compete		110	5 years
Trade name		30	3 years
Total intangible assets subject to amortization	$	4,340

Summary of Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information summarizes the results of operations of the Company and CredentialMyDoc as though the companies were combined as of January 1, 2019 (in thousands, except per share data):

	Three Months Ended March 31,
	2020		2019
Total revenues	$	61,703	$	65,678
Income from continuing operations	$	7,191	$	4,684
Net income	$	7,191	$	5,878
Net income per share - basic	$	0.22	$	0.18
Net income per share - diluted	$	0.22	$	0.18

NurseGrid [Member]

Summary of Purchase Price

A summary of the purchase price is as follows (in thousands):

Cash paid at closing	$	25,485
Cash acquired		(4,064	)
Net consideration paid		21,421
Fair value of existing equity interest in NurseGrid		3,594
Total purchase price	$	25,015

Summary of Preliminary Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands):

Accounts and unbilled receivable, net	$	92
Prepaid and other current assets		145
Operating lease right-of-use assets		50
Deferred tax assets		2,119
Goodwill		21,087
Intangible assets		1,845
Accounts payable and accrued liabilities		(194	)
Deferred revenue		(78	)
Operating lease liabilities		(51	)
Net assets acquired	$	25,015

Summary of Preliminary Components of Identifiable Intangible Assets and Estimated Useful Lives

The following table sets forth the preliminary components of identifiable intangible assets and their estimated useful lives as of the acquisition date (in thousands):

	Preliminary Fair value		Useful life
Customer relationships	$	35	8 years
Developed technology		1,110	5 years
Trade name		700	Indefinite
Total intangible assets subject to amortization	$	1,845

Summary of Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information summarizes the results of operations of the Company and NurseGrid as though the companies were combined as of January 1, 2019 (in thousands, except per share data):

	Three Months Ended March 31,
	2020		2019
Total revenues	$	61,644	$	65,375
Income from continuing operations	$	6,515	$	3,876
Net income	$	6,515	$	5,071
Net income per share - basic	$	0.20	$	0.16
Net income per share - diluted	$	0.20	$	0.16

Summary of Revenue and Operating Loss Included in Company's Consolidated Statement of Income since the Date of Acquisition

The amounts of revenue and operating loss of NurseGrid included in the Company’s Consolidated Statement of Income since the date of acquisition of March 9, 2020 for the three months ended March 31, 2020 are as follows (in thousands):

Total revenues		$	28
Operating loss		$	(220	)