|9 Months Ended|
Sep. 30, 2019
Note 4. Business Combinations
Preliminary purchase accounting
On February 1, 2019, the Company’s shareholders exchanged all of its outstanding shares in exchange for 5,263,158 post-split shares of Alliance common stock. Due to the Company’s shareholders acquiring a controlling interest in Alliance after acquisition, the transaction was treated as a reverse merger for accounting purposes, with SCWorx being the reporting company. In accordance with purchase accounting rules under ASC 805, the purchase consideration was $11,865,306.
The acquisition was accounted for under the acquisition method of accounting. The assets acquired, liabilities assumed and preliminary purchase allocation, which is based on estimates and valuations of management, is as follows:
The allocation of consideration to the assets acquired and liabilities assumed at their estimated acquisition date fair values are considered preliminary and may change within the permissible measurement period, not to exceed one year.
Identified intangible assets consist of the following:
Amortization expense for the quarter ended September 30, 2019 and 2018, was $9,485 and $0, respectively.
Amortization expense for the nine months ended September 30, 2019 and 2018, was $25,295 and $0, respectively.
As of September 30, 2019, the estimated future amortization expense on an annual basis of amortizable intangible assets is as follows:
The changes to the carrying value of goodwill from January 1, 2019 through September 30, 2019 are reflected below:
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).
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef