3. VectorVision Acquisition On September 29, 2017, the Company, through a wholly-owned subsidiary, completed the acquisition of substantially all of the assets and certain liabilities of VectorVision, Inc., an Ohio corporation (VectorVision), in exchange for 3,050,000 shares of the Companys common stock, valued at $2,287,500, pursuant to the terms of an Asset Purchase and Reorganization Agreement dated September 29, 2017 (the VectorVision Agreement). The VectorVision Agreement was entered into on an arms-length basis. The wholly-owned subsidiary that acquired the business is called VectorVision Ocular Health, Inc., a Delaware corporation, doing business as VectorVision. With respect to the 3,050,000 shares of common stock, 250,000 shares are held back by the Company through November 28, 2019 as security for VectorVisions indemnification obligations to the Company and the remaining 2,800,000 shares were issued to VectorVision at the closing of the transaction. Per the VectorVision Agreement, the 2,800,000 shares were subsequently distributed to the two VectorVision shareholders in proportion to their shareholdings in VectorVision. The shares represented approximately 11% of the Companys issued and outstanding common stock immediately following consummation of the transaction. The shares held back as security are included in the Companys weighted average common shares outstanding for per-share calculations. VectorVision develops, manufactures and sells equipment and supplies for standardized vision testing for use by eye doctors in clinical trials, for real-world vision evaluation, and industrial vision testing. VectorVision specializes in the standardization of contrast sensitivity, glare sensitivity, low contrast acuity, and ETDRS (Early Treatment Diabetic Retinopathy Study) visual acuity testing. VectorVision developed and commercialized its CSV-1000 medical device to conduct contrast sensitivity testing and it developed and commercialized its ESV-3000 medical device to conduct ETDRS visual acuity testing. The patented standardization system provides the practitioner or researcher with the ability to delineate very small changes in visual capability, either as compared to the population or from visit to visit. The Company believes VectorVisions CSV-1000 device to be the standard of care for clinical trials. The VectorVision transaction expanded the Companys technical portfolio and the Company believes it further established the Companys position at the forefront of early detection, intervention and monitoring of a range of eye diseases. In accordance with ASC 805, the Company utilized the acquisition method of accounting, whereby the purchase consideration is allocated to specific tangible and intangible assets at their estimated fair values on the date of acquisition. The following table summarizes the allocation of preliminary fair values of the purchase consideration to the assets and liabilities assumed: Fair Values Common stock consideration $ 2,287,500 Liabilities assumed 108,722 Total purchase consideration 2,396,222 Cash (4,895 ) Accounts receivable (50,105 ) Inventory (93,293 ) Prepaid assets (551 ) Property and equipment (9,458 ) Intangible assets (674,400 ) Goodwill $ 1,563,520 Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and benefits of the combined company. The following unaudited pro forma financial information gives effect to the Companys acquisition of VectorVision as if the acquisition had occurred on January 1, 2017 and had been included in the Companys consolidated statements of operations during the three and nine-month periods ended September 30, 2017: Three Months Ended September 30, Nine Months Ended September 30, 2017 2017 Pro forma net revenues $ 198,496 $ 565,289 Pro forma net loss attributable to common shareholders $ (1,879,947 ) $ (3,705,586 ) Pro forma net loss per share $ (0.07 ) $ (0.13 )