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ACQUISITIONS | 9 Months Ended
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Sep. 30, 2020
ACQUISITIONS |
ACQUISITION | NOTE 4—ACQUISITION ​ Neuralify Acquisition ​ On July 8, 2020, a subsidiary of the Company executed an Asset Purchase Agreement with Neuralify, LLC (“the Agreement”), a market leader in intelligent automation enablement solutions and services, and consummated the acquisition of substantially all of the assets and assumed certain liabilities of Neuralify, LLC. The primary reason for the acquisition was to expand the capabilities of ISG’s pure-play automation service line, ISG Automation. The purchase price was comprised of $2.3 million of cash consideration paid at closing and Neuralify, LLC will also have the right to receive additional consideration paid via earn-out payments during the next 18 months, if certain financial targets are met. The Company estimates such earn-out payments will be up to $4.9 million. ​ The following table summarizes the consideration transferred to acquire Neuralify, LLC and the amounts of identified assets acquired, and liabilities assumed as of the Agreement date: ​
​ | ​ | ​ | ​
Cash |  | $ | 2,282
Contingent consideration | ​ |  | 4,900
Total allocable purchase price | ​ | $ | 7,182
​ Recognized amounts of identifiable assets acquired and liabilities assumed as of the Agreement date: ​
​ | ​ | ​ | ​
Accounts receivable | ​ | $ | 226
Contract assets | ​ |  | 1
Intangible assets | ​ |  | 1,970
Accounts payable | ​ |  | (79)
Contract liabilities | ​ |  | (280)
Net assets acquired | ​ | $ | 1,838
​ | ​ | ​ | ​
Goodwill | ​ | $ | 5,344
​ The primary factors that drove the goodwill recognized, the majority of which is deductible for tax purposes, are the inclusion of legacy Neuralify software and workforce which expands the Company’s pure-play automation service line, ISG Automation. ​ Costs associated with this acquisition are included in the selling, general and administrative expenses in the condensed consolidated statement of comprehensive income and totaled $0.1 million during the nine months ended September 30, 2020. This business combination was accounted for under the acquisition method of accounting, and as such, the aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on estimated fair values as of the closing date. The purchase price allocations will be finalized after the completion of the valuation of certain intangible assets and any adjustments to the preliminary purchase price allocations are not expected to have a material impact on the Company’s results of operations. Based on the valuation and other factors as described above, the purchase price assigned to intangible assets and the amortization period were as follows: ​
​ | ​ | ​ | ​ | ​ | ​
​ |  | Purchase Price |  | Estimated
​ |  | Allocation |  | Useful Lives
Amortizable intangible assets: | ​ | ​ | ​ | ​ | ​
Trademark and trade names | ​ | $ | 240 |  | 3 years
Software | ​ | ​ | 160 | ​ | 7 years
Customer relationships | ​ | ​ | 1,560 | ​ | 7 years
Noncompete agreements | ​ | ​ | 10 | ​ | 2 years
Total intangible assets | ​ | $ | 1,970 | ​ | ​
​ The Condensed Consolidated Statements of Comprehensive Income includes the results of the Neuralify acquisition subsequent to the closing. Had the acquisition occurred as of January 1, 2019, the impact on the Company’s results of operations would not have been material.

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