Note 6. Vengar Acquisition

On July 31, 2021, the Company acquired all the equity interests of Vengar. This acquisition is consistent with the Company’s strategy of expanding its blockchain business. The purchase price consisted of 1,000,000 shares of common stock valued at $16.2 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 final purchase price allocation is as follows (amounts in thousands):

The goodwill recorded reflects the value to the Company of entry into zero-trust technology.

The operations of Vengar are included in the consolidated statement of operations as of August 1, 2021. During the year ended January 31, 2022, the Company recorded no revenue and net loss of $0.2 million related to Vengar.