Quarterly report pursuant to Section 13 or 15(d)

Mercury Acquisition

Mercury Acquisition
6 Months Ended
Jul. 31, 2021
Mercury Acquisition  
Note 4. Mercury Acquisition

Note 4. 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 and $0.1 million of cash.


This business combination has been accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their fair market values as of the acquisition date.


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




$ 65


Common stock





Total purchase price


$ 1,415


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




$ 74


Accounts receivable





Property, plant & equipment










Accounts payable and accrued expenses



(426 )

Deferred revenue



(3 )

Notes payable



(322 )

Total purchase price


$ 1,415



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 three and six months ended July 31, 2021, the Company recorded revenue of $0.1 million and net loss of $0 related to Mercury.