Quarterly report pursuant to Section 13 or 15(d)

Vengar Acquisition

Vengar Acquisition
6 Months Ended
Jul. 31, 2021
Vengar Acquisition  
Note 6. Vengar Acquisition

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 $5.7 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):




$ 50


Common stock





Total purchase price


$ 5,800


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




$ 27


Property, plant & equipment





Intangible assets





Accounts payable and accrued expenses



(39 )

Total preliminary purchase price


$ 5,800



Intangible assets consist of patents.


The final purchase price and the allocation thereof will not be known until the valuation of intangible assets is completed.


The operations of Vengar will not be included in the consolidated statement of operations until August 1, 2021.