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Acquisitions
 6 Months Ended
Jun. 30, 2011
Acquisitions  
Acquisitions

 Note 3 – ACQUISITIONS

 

On October 14, 2010, Lifeway purchased certain assets of First Juice, Inc., a producer of organic fruit and vegetable juice beverages designed for children.  The consideration for substantially all of the assets was an aggregate of $770,000, consisting of a $500,000 previous investment in preferred stock and an additional $270,000 cash paid in 2010.  Production was moved to Lifeway facilities upon closing of the acquisition.  The acquisition was consummated to expand the Company's presence in the children's market, increase distribution channels for existing Lifeway products, and increase diversification of the Company's products.   There were no significant liabilities assumed.  Acquisition costs for legal and professional fees have been included in General and Administrative costs and were not significant.  The entire amount of goodwill resulting from the acquisition is tax deductible.

 

The estimated fair value of assets acquired, including the real property, and liabilities assumed consisted of the following:

 

Trade names

 

$

268,000

 

Other current assets

 

 

6,000

 

Customer lists

 

 

199,000

 

Fixed assets

 

 

35,000

 

Non amortizable goodwill and brand asset

 

 

262,000

 

       Total fair value of assets acquired and liabilities assumed

 

$

770,000

 

 

Had the acquisition occurred on January 1, 2010, the impact on the gross revenue and net income of the Company would not have been significant and would have had no impact on earnings per share for the full year ended December 31, 2010.