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Acquisition | 9 Months Ended
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Sep. 30, 2022
Acquisition |
Acquisition | 6. Acquisition: ​ On August 18, 2022, the Company entered into a Share Purchase Agreement and purchased the entire share capital of Spinnakar Limited (“Spinnakar”) for an aggregate purchase price of approximately £9.8 million (equivalent to $11.8 million USD), subject to certain working capital and other adjustments, paid at closing plus a potential post-closing earn-out. The allocation of the purchase price was based upon the estimated fair value of Spinnakar’s net tangible and identifiable intangible assets as of the date of the acquisition. The transaction was accounted for under the purchase method of accounting. ​ The financial position and operating results of Spinnakar is included in the Company’s consolidated financial statements from the date of acquisition. The Company recorded net revenue for Spinnakar of approximately $1.0 million and net loss of approximately $0.4 million during the three months ended September 30, 2022. ​ The impact of the acquisition’s preliminary purchase price allocations on the Company’s consolidated balance sheet and the acquisition date fair value of the total consideration transferred is depicted in the table below. Due to the timing of the closing of the transaction in the third quarter of 2022, the Company has not yet completed its evaluation and determination of certain assets acquired and liabilities assumed, primarily the final valuation of goodwill and intangible assets and the final evaluation and assessment of income tax accounts; therefore, the final fair value of the assets acquired and liabilities assumed, which will be completed within the measurement period of up to one year from the acquisition date, may vary from the Company’s preliminary estimates: ​
​ | ​ | ​ | ​
(in thousands) | ​ | ​ | ​
Cash | ​ | $ | 3,325
Trade accounts receivable | ​ | ​ | 1,852
Other current assets | ​ | ​ | 367
Vendor relationships (10.4-year weighted average useful life) | ​ | ​ | 11,702
Goodwill | ​ | ​ | 3,422
Accounts payable and other current liabilities | ​ | ​ | (3,977)
Deferred income tax liabilities | ​ | ​ | (2,892)
Net assets | ​ | $ | 13,799
​ ​ ​ ​ ​ ​ ​ ​
(in thousands) | ​ | ​ | ​
Supplementary information: | ​ | ​ | ​
Cash paid to sellers | ​ | $ | 11,835
Contingent earn-out | ​ | ​ | 1,964
Total purchase consideration | ​ | $ | 13,799
​ | ​ | ​ | ​
Cash paid to sellers | ​ | ​ | 11,835
Cash acquired in acquisition | ​ | ​ | (3,325)
Net cash paid for acquisition | ​ | $ | 8,510
​ Intangible assets are comprised of approximately $11.7 million of vendor relationships with a weighted average amortization period of 10.4 years, representing the expected period of benefits. Goodwill, which was allocated to the Distribution segment, is the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined company and assembled workforce. Goodwill recognized as a result of the acquisition is not deductible for income tax purposes. ​ The purchase consideration includes approximately $2.0 million fair value for potential earn-out consideration if certain targets are achieved, payable in cash. The earn-out liability is included in non-current liabilities as of September 30, 2022, as any payments upon achievement of the certain targets wouldn’t be due within the next 12 months. ​ ​ ​ ​ ​

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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