The Company accounts for business combinations under the acquisition method and allocates the total purchase price for acquired businesses to the tangible and identified intangible assets acquired and liabilities assumed, based on their estimated fair values. When a business combination includes the exchange of the Companys common stock, the value of the common stock is determined using the closing market price as of the date such shares were tendered to the selling parties. The fair values assigned to tangible and identified intangible assets acquired and liabilities assumed are based on management or third-party estimates and assumptions that utilize established valuation techniques appropriate for the Companys industry and each acquired business. Goodwill is recorded as the excess, if any, of the aggregate fair value of consideration exchanged for an acquired business over the fair value (measured as of the acquisition date) of total net tangible and identified intangible assets acquired. A liability for contingent consideration, if applicable, is recorded at fair value as of the acquisition date. In determining the fair value of such contingent consideration, management estimates the amount to be paid based on probable outcomes and expectations on financial performance of the related acquired business. The fair value of contingent consideration is reassessed quarterly, with any change in the estimated value charged to operations in the period of the change. Increases or decreases in the fair value of the contingent consideration obligations can result from changes in actual or estimated revenue streams, discount periods, discount rates and probabilities that contingencies will be met. During the six months ended June 30, 2019, the Company entered into one acquisition, which is detailed below. The acquisition was conducted in an effort to expand the Companys operations into the field of commercial hemp business. 2019 Acquisitions Khrysos Global, Inc. On February 12, 2019, the Company and Khrysos Industries, Inc., a Delaware corporation and wholly owned subsidiary of the Company (KII) entered into an Asset and Equity Purchase Agreement (the AEPA) with, Khrysos Global, Inc., a Florida corporation (Seller), Leigh Dundore (LD), and Dwayne Dundore (the Representing Party) for KII to acquire substantially all the assets of Seller and all the outstanding equity of INXL Laboratories, Inc., a Florida corporation (INXL) and INX Holdings, Inc., a Florida corporation (INXH). The business of the Seller, INXL and INXH collectively acquired by us provide end to end extraction and processing via the companys proprietary systems that allow for the conversion of hemp feed stock into hemp oil and hemp extracts. Additionally, KII offers various rental, sales, and service programs of KIIs extraction and processing systems. The consideration payable for the assets of the Seller and the equity of INXL and INXH is an aggregate of $16,000,000, to be paid as set forth under the terms of the AEPA and allocated between the Seller and LD in such manner as they determine at their discretion. At closing, Seller, LD and the Representing Party received an aggregate of 1,794,972 shares of the Companys common stock which have a value of $14,000,000 for the purposes of the AEPA or $12,649,000 fair value for the acquisition valuation and $500,000 in cash. Thereafter, we agree to pay the Seller, LD and the Representing Party an aggregate of: $500,000 in cash thirty (30) days following the date of closing; $250,000 in cash ninety (90) days following the date of closing; $250,000 in cash one hundred and eighty (180) days following the date of closing; $250,000 in cash two hundred and seventy (270) days following the date of closing; and $250,000 in cash one (1) year following the date of closing. In addition, the Company agreed to issue to Representing Party, subject to the approval of the holders of at least a majority of the issued and outstanding shares of the Companys common stock and the approval of The Nasdaq Stock Market (collectively, the Contingent Consideration Warrants) consisting of six (6) six-year warrants, to purchase 500,000 shares of common stock each, for an aggregate of 3,000,000 shares of common stock at an exercise price of $10 per share exercisable upon reaching certain levels of cumulative revenue or cumulative net income before taxes by the business during the any of the years ending December 31, 2019, 2020, 2021, 2022, 2023 or 2024. The AEPA contains customary representations, warranties and covenants of the Company, KII, the Seller, LD and the Representing Party. Subject to certain customary limitations, the Seller, LD and the Representing Party have agreed to indemnify the Company and KII against certain losses related to, among other things, breaches of the Sellers, LDs and the Representing Partys representations and warranties, certain specified liabilities and the failure to perform covenants or obligations under the AEPA. On February 28, 2019, KII purchased a 45-acre tract of land in Groveland, Florida, upon which KII intends to build a R&amp;D facility, greenhouse and allocate a portion for farming. The Company has estimated fair value (in thousands) at the date of acquisition of the acquired tangible and intangible assets and liabilities as follows (unaudited): Present value of cash consideration $ 1,894 Estimated fair value of common stock issued 12,649 Aggregate purchase price $ 14,543 The following table summarizes the estimated preliminary fair values of the assets acquired and liabilities assumed in February 2019 (in thousands): Current assets $ 211 Inventory 1,264 Property, plant and equipment 2,260 Trademarks and trade name 1,876 Customer-related intangible 5,629 Non-compete intangible 956 Goodwill 4,353 Current liabilities (1,913 ) Notes payable (518 ) Net assets acquired $ 14,118 The preliminary estimated fair value of intangible assets acquired in the amount of $8,461,000 was determined through the use of a third-party valuation firm using various income and cost approach methodologies. Specifically, the intangibles identified in the acquisition were trademarks and trade name, customer-related intangible and non-compete agreement. The trademarks and trade name, customer-related intangible and non-compete are being amortized over their estimated useful life of 8 years, 7 years and 6 years, respectively. The straight-line method is being used and is believed to approximate the time-line within which the economic benefit of the underlying intangible asset will be realized. Goodwill of $4,353,000 was recognized as the excess purchase price over the acquisition-date fair value of net assets acquired. Goodwill is estimated to represent the synergistic values expected to be realized from the combination of the two businesses. The goodwill is expected to be deductible for tax purposes. The Contingent Consideration Warrants discussed above are subject to vesting based upon the achievement of various sales milestones and only if the sellers do not terminate their services. As such, the warrants were considered equity-based compensation for future services and not considered contingent consideration in the calculation of the purchase price. The costs related to the acquisition are included in legal and accounting fees and were expensed as incurred. Revenues included in the consolidated statement of operations for the three and six months ended June 30, 2019 were approximately $274,000 and $341,000, respectively.