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Business Combination (Tables)
 3 Months Ended
Mar. 31, 2022
Business Combinations [Abstract]  
Schedule of preliminary purchase price of Reflect
(in thousands)   Consideration  
Cash consideration for Reflect stock   $ 16,664 (1)
Cash consideration for Retention Bonus Plan     1,333 (2)
Common stock issued to Reflect shareholders     4,667 (3)
Common stock issued to Retention Bonus Plan     333 (4)
Secured Promissory Note     2,500 (5)
Earnout liability     5,600 (6)
Total consideration     31,097  
Cash acquired     (813 )(7)
Net consideration transferred   $ 30,284  

(1) Cash consideration for outstanding shares of Reflect capital stock per Merger Agreement.
   
(2) Cash consideration utilized to fund the Retention Bonus Plan per Merger Agreement.
   
(3) Company common stock issued in exchange for outstanding shares of Reflect capital stock per Merger Agreement.
   
(4) Company common stock issued to fund the Retention Bonus Plan per Merger Agreement.

 

(5) The Secured Promissory Note accrues interest at 0.59% (the applicable federal rate) and requires the Company and Reflect to pay equal monthly principal installments of $104 on the fifteenth (15th) day of each month, commencing on March 15, 2022. Any remaining or unpaid principal shall be due and payable on February 17, 2023.
   
(6) Represents an estimate of the fair value of the Guaranteed Consideration as of the Merger, which, if any, is payable on or after the three-year anniversary of the effective time of the Merger (subject to the Extension Option), in an amount by which the value of the CREX Shares on such anniversary is less than $6.40 per share, or if certain customers of Reflect collectively achieve over 85,000 billable devices online at any time on or before December 31, 2022, is less than $7.20 per share (such applicable amount, the “Guaranteed Price”), multiplied by the amount of CREX Shares held by the Reflect stockholders on the Guarantee Date (subject to the Extension Option), subject to the terms of the Merger Agreement.
   
(7) Represents the Reflect cash balance acquired at Closing.

 
Schedule of preliminary purchase price allocation
(in thousands)  Total 
Accounts receivable  $1,823 
Inventory   196 
Prepaid expenses & other current assets   1,484 
Property and equipment   96 
Operating right of use assets   493 
Deferred tax assets, net of valuation allowance   
-
 
Other assets   36 
Identified intangible assets:     
Definite-lived trade names   4,000 
Definite-lived Developed technology   12,000 
Definite-lived Customer relationships   5,000 
Definite-lived Noncompete agreements   500 
Goodwill   8,487 
Accounts payable   (104)
Accrued expenses   (314)
Customer deposits   (1,661)
Deferred revenues   (1,259)
Current maturities of operating leases   (277)
Long-term obligations under operating leases   (216)
Net consideration transferred  $30,284 

 
Schedule of preliminary valuation and amortization period of identifiable intangible assets
(in thousands)  Preliminary Valuation   Amortization Period 
Identifiable definite-lived intangible assets:        
Trade names  $4,000   5 years 
Developed technology   12,000   7 years 
Noncompete   500   2 years 
Customer relationships   5,000   10 years 
Total  $21,500               

 
Schedule of unaudited pro forma
(in thousands, except earnings per common share)   2021  
Net sales   $ 30,680  
Net income/(loss)   $ 799  
Earnings per common share   $ 0.06