Business Combination On April 28, 2017, the Company acquired substantially all of the assets and business of Nesscap Energy, Inc. (Nesscap), a developer and manufacturer of ultracapacitor products for use in transportation, renewable energy, industrial and consumer markets, in exchange for the issuance of approximately 4.1 million shares of Maxwell common stock (the Share Consideration) and the assumption of certain liabilities pursuant to the terms of the previously announced Arrangement Agreement dated as of February 28, 2017 between Maxwell and Nesscap (the  Nesscap Acquisition). The value of the Share Consideration was approximately $25.3 million based on the closing price of the Companys common stock on April 28, 2017. Additionally, per the Arrangement Agreement, the Company paid approximately $1.0 million of transaction taxes on behalf of the seller. The Nesscap Acquisition was effected by means of a court-approved statutory plan of arrangement and was approved by the requisite vote cast by shareholders of Nesscap at a special meeting of Nesscaps shareholders held on April 24, 2017. The Share Consideration represented approximately 11.3% of the outstanding shares of Maxwell, based on the number of shares of Maxwell common stock outstanding as of April 28, 2017. The Nesscap Acquisition adds scale to the Companys operations and expands the Companys portfolio of energy storage products. The fair value of the purchase price consideration consisted of the following (in thousands): Maxwell common stock $ 25,294 Settlement of sellers transaction expenses 1,006 Total estimated purchase price $ 26,300 The acquisition has been accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations . Under this method of accounting, the Company recorded the acquisition based on the fair value of the consideration given and the cash consideration paid. The Company allocated the acquisition consideration paid to the identifiable assets acquired and liabilities assumed based on their respective fair values at the date of completion of the acquisition. Any excess of the value of consideration paid over the aggregate fair value of those net assets has been recorded as goodwill, which is attributable to expected synergies from combining operations, the acquired workforce, as well as intangible assets which do not qualify for separate recognition. The goodwill associated with the acquisition is not deductible for income tax purposes. The fair values of net tangible assets and intangible assets acquired were based upon the Company's estimates and assumptions at the acquisition date. The following table summarizes the allocation of the assets acquired and liabilities assumed at the acquisition date (in thousands): Fair Value Cash and cash equivalents $ 909 Accounts receivable 2,545 Inventories 4,397 Prepaid expenses and other assets 764 Property and equipment 3,314 Intangible assets 11,800 Accounts payable, accrued compensation and other liabilities (5,713 ) Employee severance obligation (3,340 ) Total identifiable net assets 14,676 Goodwill 11,624 Total purchase price $ 26,300 The fair value of inventories acquired included an acquisition accounting fair market value step-up of $686,000 . During the year ended December 31, 2017, the Company recognized $646,000 of the step-up as a component of cost of revenue for acquired inventory sold during the period. The remaining $40,000 related to the fair value step-up associated with the acquisition was recognized in connection with the Companys adoption of ASC 606. For the year ended December 31, 2017, acquisition-related costs of $1.9 million were included in selling, general, and administrative expenses in the Company's consolidated statements of operations. The following table presents details of the identified intangible assets acquired through the Nesscap Acquisition (in thousands): Estimated Useful Life (in years) Fair Value Customer relationships - institutional 14 $ 3,200 Customer relationships - non-institutional 10 4,400 Trademarks and trade names 10 1,500 Developed technology 8 2,700 Total intangible assets $ 11,800 The fair value of the $11.8 million of identified intangible assets acquired in connection with the Nesscap Acquisition was estimated using an income approach. Under the income approach, an intangible asset's fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. More specifically, the fair values of the customer relationship intangible assets were determined using the multi-period excess earnings method, which estimates an intangible assets value based on the present value of the incremental after-tax cash flows attributable only to the intangible asset. The fair values of the trademark and trade names and developed technology intangible assets were valued using the relief from royalty method, which is based on the principle that ownership of the intangible asset relieves the owner of the need to pay a royalty to another party in exchange for rights to use the asset. The following unaudited pro forma financial information presents the combined results of operations for the year ended December 31, 2017, as if the Nesscap Acquisition had occurred at the beginning of fiscal year 2016 (in thousands, except per share amounts): Year Ended December 31, 2017 Net revenues $ 92,875 Net loss (43,849 ) Net loss per share: Basic and diluted (1.19 ) Weighted average common shares outstanding: Basic and diluted 36,809 The unaudited pro forma information has been adjusted to reflect the following:  Amortization expense for acquired intangibles and removal of Nesscap historical intangibles amortization  Removal of historical Nesscap interest expenses, gains and losses related to debt not acquired  Recognition of expense associated with the valuation of inventory acquired The pro forma data is presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2016 or of the results of future operations of the combined business. The unaudited pro forma financial information does not reflect any operating efficiencies and cost saving that may be realized from the integration of the acquisition. For the year ended December 31, 2017, $17.3 million of revenue and $0.9 million of net loss included in the Company's consolidated statements of operations was related to Nesscap operations. The Company does not consider the 2017 revenue and net loss related to Nesscap operations to be indicative of the results of the Nesscap Acquisition due to integration activities since the acquisition date. Also see Note 5, Goodwill and Intangible Assets , for further information on goodwill and intangible assets related to the Nesscap Acquisition.