12. Acquisitions Solebit LABS Ltd. On July 31, 2018, the Company entered into a share purchase agreement (the Purchase Agreement) pursuant to which it acquired Solebit LABS Ltd. (Solebit), a company organized under the laws of the State of Israel, that provides security software. Solebits technology enhances security for the Companys customers and adds to its ability to detect and prevent cyber-attacks, zero day threats and malware across email and the web in real time. This acquisition further enhances the Companys cyber resilience platform architecture. Prior to the closing of the acquisition, the Company held an ownership interest in Solebit of approximately 1.5%. Upon completion of the acquisition, the Company recognized a gain of $0.3 million recorded in foreign exchange expense and other, net within the condensed consolidated statement of operations for the remeasurement of its previously held ownership interest to fair value, which was $0.8 million. The total preliminary purchase price of $96.5 million included cash payments of approximately $96.1 million, inclusive of $8.8 million in purchase price held in escrow. The escrow is being held in respect of claims for indemnification for one year from the purchase date. The preliminary amounts due from sellers of $0.5 million includes working capital adjustments and certain preliminary one-year indemnification period purchase price adjustments identified by the Company. The preliminary purchase price, cash payments and purchase price allocation are subject to finalization of amounts due from the seller for the one-year indemnification period adjustments and potential working capital adjustments. The Company expects to finalize the purchase price within the required one-year measurement period. The acquisition of Solebit has been accounted for as a business combination and, in accordance with ASC 805, Business Combinations , the Company has recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The following table summarizes the preliminary purchase price allocation recorded in the quarter ended September 30, 2018 (in thousands): Preliminary purchase consideration: Total cash paid, net of acquired cash $ 85,733 Cash and cash equivalents acquired 10,410 Preliminary amounts due from sellers (492 ) Fair value of previously held asset 828 Total preliminary purchase price consideration $ 96,479 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 10,410 Prepaid expenses and other current assets 75 Intangible assets 16,964 Goodwill 74,395 Total assets acquired 101,844 Accounts payable (18 ) Accrued expenses and other current liabilities (2,335 ) Deferred revenue (663 ) Other non-current liabilities (2,349 ) Total fair value of assets acquired and liabilities assumed $ 96,479 In the three and six months ended September 30, 2018, acquisition-related expenses were $0.6 million and $1.0 million, respectively. Acquisition-related expenses have been included primarily in general and administrative expenses in the condensed consolidated statements of operations. The operating results of Solebit are included in the condensed consolidated statements of operations beginning on the acquisition date. The significant intangible assets identified in the preliminary purchase price allocation discussed above include developed technology and customer relationships, which are amortized over their respective useful lives on a straight-line basis when the pattern in which their economic benefits will be consumed cannot be reliably determined. To value the developed technology asset, the Company utilized the income approach, specifically a discounted cash-flow method known as the multi-period excess earnings method. Customer relationships represent the underlying relationships with certain customers to provide ongoing services for products sold. The Company utilized the income approach, specifically the distribution method, a subset of the excess-earnings method to value the customer relationships. A portion of the purchase price has been allocated to intangible assets and goodwill, respectively, and is reflected in the tables above. The fair value of the assets acquired and liabilities assumed is less than the purchase price, resulting in the recognition of goodwill. The goodwill reflects the value of the synergies we expect to realize and the assembled workforce and is not deductible for tax purposes. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the acquisition, which remains preliminary, and using assumptions that the Companys management believes are reasonable given the information then available. The final allocation of the purchase price may differ materially from the information presented in these condensed consolidated financial statements. Any changes to the preliminary estimates of the fair value of the assets acquired and liabilities assumed during the measurement period will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill. The following table presents the estimated fair values and useful lives of the identifiable intangible assets acquired: Amount (in thousands) Estimated Useful Life (in years) Developed technology $ 16,689 10 Customer relationships 235 7 Trade names 40 1 Total identifiable intangible assets $ 16,964 Pro Forma Financial Information (unaudited) The following unaudited pro forma information presents the condensed combined results of operations of the Company and Solebit for the three and six months ended September 30, 2018 and 2017, as if the acquisition of Solebit had been completed on April 1, 2017. These pro forma condensed consolidated financial results have been prepared for comparative purposes only and include certain adjustments that reflect pro forma results of operations such as fair value adjustments (step-downs) for deferred revenue, increased amortization for the fair value of acquired intangible assets and adjustments to eliminate transaction costs incurred by the Company and Solebit. The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the operations of the Company and Solebit. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of the results of operations that actually would have been achieved had the acquisition occurred as of April 1, 2017, nor are they intended to represent or be indicative of future results of operations (in thousands, except per share amounts): Three months ended September 30, Six months ended September 30, 2018 2017 2018 2017 Revenue $ 82,275 $ 63,307 $ 161,020 $ 121,672 Net loss (1,311 ) (2,415 ) (5,664 ) (5,214 ) Basic and diluted net loss per share $ (0.02 ) $ (0.04 ) $ (0.10 ) $ (0.09 ) Weighted average number of ordinary shares used in computing basic and diluted net loss per share 59,800 57,027 59,489 56,662 ATAATA, Inc. On July 9, 2018, the Company acquired ATAATA, Inc. (Ataata), a privately-owned company based in the United States, for cash consideration of approximately $25.1 million, net of cash acquired of $1.9 million. Ataata is a cyber security training and awareness platform designed to reduce human error in the workplace and help enable organizations to become more secure by changing the security culture of their employees. The acquisition will allow customers to measure cyber risk training effectiveness by converting behavior observations into actionable risk metrics for security professionals. The addition of security awareness training and risk scoring and analysis strengthens the Companys cyber resilience for email capabilities. The acquisition of Ataata has been accounted for as a business combination and, in accordance with ASC 805, Business Combinations , the Company has recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The preliminary purchase price allocation primarily consisted of $1.5 million of identifiable intangible assets and approximately $22.6 million of goodwill that is not deductible for tax purposes. The identifiable intangible assets primarily include developed technology of $1.4 million and customer relationships of $0.1 million, with estimated useful lives of ten and six years, respectively. The goodwill balance is primarily attributed to the expanded market opportunities when combining Ataata's awareness training technology with the Companys other offerings. The preliminary purchase price and allocations are subject to finalization of amounts due from the seller inclusive of certain working capital and one-year indemnification period adjustments. In the three and six months ended September 30, 2018, acquisition-related expenses were $0.1 million and $0.5 million, respectively. Acquisition-related expenses have been included primarily in general and administrative expenses in the condensed consolidated statements of operations. The operating results of Ataata are included in the condensed consolidated statements of operations beginning on the acquisition date. The Company has not presented pro forma results of operations for the Ataata acquisition because it is not material to the Company's condensed consolidated results of operations, financial position, or cash flows.