The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date, giving effect to the post-closing purchase price adjustment (in thousands).
Prepaid expenses and other current assets
Property and equipment
Accounts payable and accrued liabilities
Net identifiable assets acquired
Tradenames and trademarks
In-process research and development
Net assets acquired
After our December 31, 2022 and March 31, 2023 financial statements were issued, the valuation report for the acquired intangible assets was completed. Based on the results of that valuation report, we have revised the preliminarily allocated $650,000 of goodwill to be allocated as follows: $50,000 property and equipment, $134,000 developed technology, $96,000 customer relationships, $47,000 trademarks and tradenames, $29,000 in-process research and development, $26,000 non-compete agreements, $22,000 order backlog, and $246,000 goodwill. In addition, the changes in these provisional amounts resulted in an increase in amortization expense and accumulated amortization of $82,000 recorded in the three months ended June 30, 2023, of which $12,000 relates to the three months ended December 31, 2022, and $37,000 relates to the three months ended March 31, 2023.
The fair value of accounts receivable is equal to the $306,000 gross contractual amount, as we expect the entire balance to be collectible.
The goodwill recognized is attributable primarily to expected synergies and the assembled workforces of SPEC/KWJ. The goodwill is expected to be deductible for income tax purposes.
Acquisition of Calman Technology Limited
On March 17, 2023, we acquired all of the outstanding shares in Calman Technology Limited (“Calman”), a Scotland-based designer and manufacturer of membrane keypads, graphic overlays and printed electronics, pursuant to a Share Purchase Agreement (the “Share Purchase Agreement”) by and among the Company’s wholly owned United Kingdom subsidiary, Interlink Electronics Limited, and the shareholders of Calman. The Share Purchase Agreement contains customary representations, warranties and covenants, including non-competition covenants on the part of the sellers, who continue to be employed by Calman. Under the terms of the Share Purchase Agreement, the purchase price is GB£4,127,000 (approximately $4,912,000), of which GB£3,627,000 (approximately $4,317,000) was paid at closing and the remaining GB£500,000 (approximately $595,000) is being held back for up to nine months against potential claims for breaches of representations and warranties (subject to certain deductibles and caps). The purchase price was subject to adjustment based on the extent, if any, to which Calman’s net working capital at closing was more or less than GB£600,000 (approximately $714,000), which resulted in additional purchase consideration of approximately GB£1,292,000 (approximately $1,538,000).