On May Beasley paid $ in stock fair value for all of the assets and liabilities of Donovan, which will cease to exist as a separate entity. In connection with the merger, Beasley incurred $ in accounts payable for legal and accounting fees.
Beasley also agreed to pay $ to the former owners of Donovan contingent on meeting certain revenue goals during the following year. Beasley estimated the present value of its probability adjusted expected payment for the contingency at $ In determining its offer, Beasley noted the following:
Donovan holds a building with a fair value $ more than its book value.
Donovan has developed unpatented technology appraised at $ although is it not recorded in its financial records.
Donovan has a research and development activity in process with an appraised fair value of $ The project has not yet reached technological feasibility.
Book values for Donovans current assets and liabilities approximate fair values.
