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Subsequent Events
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events
SUBSEQUENT EVENTS
On August 2, 2017, we completed the acquisition of ViXS Systems, Inc. (“ViXS”), pursuant to an Arrangement Agreement (the “Agreement”) dated as of May 18, 2017 between Pixelworks and ViXS (the "Acquisition"). Pursuant to the Agreement, at the closing of the Acquisition, we issued approximately 3,700,000 shares of our common stock to the former holders of the capital stock of ViXS, and ViXS became a wholly owned subsidiary of Pixelworks. We also issued approximately 200,000 restricted stock units to the former holders of ViXS’ unvested restricted stock units.
Based on an evaluation of the provisions of FASB Accounting Standards Codification Topic 805, “Business Combinations,” Pixelworks was determined to be the acquirer for accounting purposes. The estimated purchase price is $17,531, calculated based on the common shares Pixelworks issued, plus the fair value of replacement equity awards attributable to service prior to the closing of the Acquisition. The calculation of the estimated purchase price is subject to change as the Company is in process of completing the final analysis of certain components of the purchase price. The total estimated purchase price will be allocated to ViXS’ net assets and liabilities, including identifiable intangible assets consisting primarily of developed technology, customer relationships and trade name. The excess of the purchase price over the assets acquired and liabilities assumed will be allocated to goodwill. Because the Acquisition closed on August 2, 2017, the Company has not completed the detailed valuation studies necessary to arrive at the estimates of the fair value of ViXS’ assets acquired and liabilities assumed, and the related allocation of purchase price.
Pro forma revenue, net income (loss) and net income (loss) per share have not been presented as we are still completing the valuation studies necessary to arrive at these financial measures. We expect the valuation may impact cost of sales, intangible amortization expense, depreciation expense and stock-based compensation expense.
During the three and six months ended June 30, 2017, the Company incurred acquisition costs of $730 and $894, respectively, associated with the Acquisition. The Acquisition costs are being expensed as incurred and are presented in the condensed consolidated statements of operations in selling, general and administrative expense.