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Acquisitions (Tables)
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Summary of Changes in Preliminary Calculations of the Fair Values of Assets Acquired and Liabilities Assumed
The following summarizes the preliminary calculations of the fair values of Surdex assets acquired and liabilities assumed as of the acquisition date (in thousands):
(in thousands)
Surdex
Assets:
Accounts receivable, net$4,052 
Contract assets3,210 
Prepaid and other current assets1,940 
Property and equipment, net15,167 
Operating lease, right-of-use assets1,030 
Goodwill17,461 
Other intangible assets12,810 
Total assets acquired:$55,670 
Liabilities:
Accounts payable and accrued liabilities, current portion$3,083 
Contract liabilities685 
Other non-current obligations11,465 
Operating lease obligation, less current portion1,030 
Deferred tax liability6,987 
Total liabilities assumed:$23,250 
Net assets acquired:$32,420 
Cash flow reconciling items:
Issuance of common stock as partial consideration$(16,536)
Cash paid for acquisitions, net of cash acquired$15,884 
The purchase price allocations at fair value, for the 2023 acquisitions as of December 31, 2023 are presented below:
(in thousands)
2023
Assets:
Accounts receivable, net$10,112 
Contract assets6,334 
Prepaid and other current assets361 
Property and equipment, net1,952 
Operating lease, right-of-use assets7,078 
Goodwill43,900 
Other intangible assets27,361 
Other assets - non-current44 
Total assets acquired:$97,142 
Liabilities:
Accounts payable and accrued liabilities, current portion$3,228 
Contract liabilities4,891 
Other non-current obligations24,222 
Operating lease obligation, less current portion7,078 
Deferred tax liability5,787 
Total liabilities assumed:$45,206 
Net assets acquired:$51,936 
Cash flow reconciling items:
Issuance of common stock as partial consideration$(26,133)
Cash paid for acquisitions, net of cash acquired$25,803 
The following table summarizes the preliminary purchase price allocation at fair value for identifiable intangible assets acquired in 2024 and 2023:
2024Weighted-Average Life2023Weighted-Average Life
Customer relationships$14,830 12.94$20,050 10.45
Contract rights1,870 0.646,980 1.18
Favorable leaseholds- n/a331 7.76
Total$16,700 $27,361 
Summary of Results of Operations of Businesses Acquired From Dates of Acquisitions The following table presents the results of operations of Surdex since the date of acquisition for the three and six months ended June 30, 2024 (in thousands):
For the Three Months Ended
For the Six Months Ended
June 30, 2024June 30, 2024
Gross Contract Revenue 1
$6,333 $6,333 
Pre-tax Net Income2
$1,201 $1,201 
1 Gross contract revenue includes adjustments as required by ASC 606, Revenue from Contracts with Customers based on opening balance sheet provided by the acquired companies. There is no assurance these adjustments will be consistent in future periods. Opening balance sheet balances are subject to adjustment prior to being finalized.
2 Pre-tax Net Income excludes corporate overhead allocation.
Summary of Unaudited Pro Forma Results The unaudited pro forma results are presented for informational purposes
only and are not meant to represent actual operating results that would have been achieved had the related events occurred on such date (in thousands):
For the Three Months Ended
For the Six Months Ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Gross Contract Revenue 3
$104,582 $91,215 $205,426 $171,923 
Pre-tax Net (Loss) Income
$(2,048)$1,453 $(4,009)$1,376 

3Gross contract revenue in these pro forma financials does not conform to GAAP as required by ASC 606, Revenue from Contracts with Customers, as it is impracticable to obtain the historical information necessary to apply this accounting standard. The historical estimates required to be able to accurately determine the percent complete accounting on the contracts that comprise the revenue is not available for the required periods.