Note 5. Mercury Acquisition

On June 30, 2021, the Company acquired all the equity interests of Mercury. This acquisition is consistent with the Company’s strategy of expanding its cryptocurrency business. The purchase price consisted of 450,000 shares of common stock valued at $1.3 million at time of purchase and $0.1 million of cash.

This business combination has been accounted for using the acquisition method of accounting.

The purchase price recognized in our financial statements consisted of the following (amounts in thousands):

The Company’s purchase price allocation is as follows (amounts in thousands):

The goodwill recorded reflects the value to the Company of Mercury’s mining operations.

The operations of Mercury are included in the consolidated statement of operations as of July 1, 2021. During the year ended January 31, 2022, the Company recorded revenue of $0.7 million and net loss of $0.2 million related to Mercury.