Print Page | Close Window

SEC Filings

10-Q
INCONTACT, INC. filed this Form 10-Q on 11/09/2016
Entire Document
 

 

assets purchased as part of the Attensity acquisition and their respective preliminary estimated economic useful life at the date of the acquisition (in thousands, except useful life):

 

 

 

Amount

 

 

Economic Useful Life (in years)

 

Customer relationships

 

$

140

 

 

 

5

 

Technology

 

 

141

 

 

 

5

 

In-process research and development

 

 

3,193

 

 

Indefinite

 

Patents

 

 

1,443

 

 

 

8

 

Total intangible assets

 

$

4,917

 

 

 

 

 

 

 

NOTE 6. INTANGIBLE ASSETS

Intangible assets consisted of the following (in thousands):

 

 

September 30, 2016

 

 

December 31, 2015

 

 

Gross

 

 

Accumulated

 

 

Intangible

 

 

Gross

 

 

Accumulated

 

 

Intangible

 

 

Assets

 

 

Amortization

 

 

Assets, Net

 

 

Assets

 

 

Amortization

 

 

Assets, Net

 

Customer lists acquired

$

28,973

 

 

$

(22,412

)

 

$

6,561

 

 

$

28,123

 

 

$

(20,859

)

 

$

7,264

 

Technology and patents

 

35,112

 

 

 

(16,148

)

 

 

18,964

 

 

 

24,358

 

 

 

(14,222

)

 

 

10,136

 

Trade names and

   trademarks

 

3,546

 

 

 

(2,050

)

 

 

1,496

 

 

 

3,190

 

 

 

(1,358

)

 

 

1,832

 

Total intangible assets

$

67,631

 

 

$

(40,610

)

 

$

27,021

 

 

$

55,671

 

 

$

(36,439

)

 

$

19,232

 

 

Amortization expense was $3.8 million for both the nine months ended September 30, 2016 and 2015.

Based on the recorded intangibles at September 30, 2016, estimated amortization expense is expected to be $1.3 million during the remainder of 2016, $5.0 million in 2017, $4.5 million in 2018, $4.1 million in 2019, $3.9 million in 2020 and $5.2 million thereafter.

 

 

NOTE 7. ACCRUED LIABILITIES

Accrued liabilities consisted of the following (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

 

 

2016

 

 

 

2015

 

Accrued payroll and other compensation

 

$

5,775

 

 

$

4,726

 

Accrued state sales taxes

 

 

3,215

 

 

 

3,939

 

Accrued vendor charges

 

 

236

 

 

 

1,281

 

Accrued interest

 

 

-

 

 

 

717

 

Other

 

 

2,995

 

 

 

2,165

 

Total accrued liabilities

 

$

12,221

 

 

$

12,828

 

 

 

NOTE 8. LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

Convertible Notes

On March 30, 2015, we issued $115.0 million in aggregate principal amount of 2.50% Convertible Senior Notes (the “Convertible Notes”) due April 1, 2022, unless earlier converted by the holder pursuant to their terms.  Net proceeds from the Convertible Notes were approximately $111.2 million, net of transaction fees.  The Convertible Notes pay interest in cash semiannually in arrears at a rate of 2.50% per annum.

The Convertible Notes are unsecured and will be senior in right of payment to any future debt that is expressly subordinated to the Convertible Notes.  The Convertible Notes will be structurally subordinated to all debt and other liabilities and commitments of our subsidiaries, including trade payables and any guarantees that they may provide with respect to any of our existing or future debt, and will be effectively subordinated to any secured debt that we may incur to the extent of the assets securing such indebtedness.

15