NOTE 2. ACQUISITION ? On August 21, 2017, the Company, through Everest/Sapphire Acquisition, LLC (Everest/Sapphire), a Delaware limited liability company and wholly owned subsidiary of Clarus, acquired 100% of the outstanding membership interests of Sierra Bullets, L.L.C., a manufacturer of a wide range of bullets primarily for both rifles and pistols, pursuant to the terms of the purchase and sale agreement dated August 21, 2017 (the Purchase Agreement), by and among Everest/Sapphire, Sierra Bullets, BHH Management, Inc., a California corporation (BHH), Lumber Management, Inc., a Delaware corporation (LMI and, together with BHH, each a Seller and, collectively, the Sellers), and BHH, in its capacity as the representative of Sellers (the Sellers Representative). Under the terms of the Purchase Agreement, Everest/Sapphire acquired Sierra for an aggregate purchase price of $79,000, plus or minus a preliminary working capital adjustment, in accordance with and subject to the terms and conditions set forth in the Purchase Agreement. ? The Company believes the acquisition of Sierra is expected to provide the Company with the following benefits: ?  greater combined global revenue base;  increased diversification and seasonal balance;  increased gross margins, profitability and free cash flows;  advance the development, marketing and distribution of products; and  access to increased liquidity to further acquire and grow businesses. ? The Companys fair value estimates for the purchase price allocation are preliminary and may change during the allowable allocation period, which is up to one year from the date of the acquisition of Sierra, as we finalize the working capital adjustment and continue to obtain information that existed as of the date of acquisition so that we may finalize the allocation of the purchase price for the assets acquired and liabilities assumed and determine the associated fair values. We are currently waiting for a final valuation report as well as other information needed to