Juno 2013 Annual Report Download - page 141

Table of Contents
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subscribers to pay accounts, could significantly impact the estimated fair value of the contingent consideration. A 100 basis point increase or decrease in
the discount rate would have resulted in a decrease or increase in the fair value of the contingent consideration at December 31, 2012 by $94,000 or
$96,000, respectively.
During the quarter ended March 31, 2013, Facebook restricted certain functionality of the schoolFeed app, which limited schoolFeed's ability to
use the Facebook platform to contact users who were not registered members of schoolFeed. Subsequently, in May 2013, Facebook discontinued the
schoolFeed app's access to the Facebook platform, which resulted in the termination of future new installations of the schoolFeed app through
Facebook, as well as the discontinuance of the sharing of Facebook content through the schoolFeed app.
At June 30, 2013, the Company had accrued $3.4 million for the contingent consideration payment for the earnout period ended June 30, 2013,
which was paid in full in August 2013. The Company does not currently expect any contingent consideration will be earned for either of the remaining
earnout periods.
The total cost of the schoolFeed acquisition was estimated to equal approximately $16.9 million based on fair values estimated at the Closing Date.
The following table summarizes the components of the purchase price (in thousands):
In connection with the acquisition, the Company incurred $0.5 million in transaction-related costs in the year ended December 31, 2012, which are
recorded in general and administrative expenses in the consolidated statement of operations.
The preliminary purchase price for the acquisition was allocated to tangible and intangible assets acquired and liabilities assumed based on their
estimated fair values at the Closing Date, as
F-46
Cash consideration $ 7,500
Fair value of contingent consideration 9,397
Total fair value of consideration transferred $ 16,897