4. Acquisition of Direct Auto Insurance Company On August 31, 2018, the Company completed the acquisition of 100% of the common stock of Direct Auto from the private shareholders of Direct Auto, and Direct Auto became a consolidated subsidiary of the Company. Direct Auto is a property and casualty insurance company specializing in non-standard automobile insurance in the state of Illinois. The Company realized a $4,578 gain on the purchase of Direct Auto due to the use of applicable purchase accounting guidance (known as a bargain purchase). Direct Auto remains headquartered in Chicago, Illinois and the current president (who was also one of the principal shareholders) of Direct Auto continues to manage the Direct Auto insurance operations along with the current staff and management team. The results of Direct Auto are included as part of the Companys non-standard auto business segment following the closing date. We account for business acquisitions in accordance with the acquisition method of accounting, which requires, among other things, that most assets acquired, liabilities assumed, and contingent consideration be recognized at their fair values as of the acquisition date, which is the closing date for the Direct Auto transaction. During the measurement period, adjustments to provisional purchase price allocations are recognized if new information is obtained about the facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends as soon as it is determined that no more information is obtainable, but in no case shall the measurement period exceed one year from the acquisition date. The Company does not expect any adjustments during this period. The acquired Direct Auto business contributed revenues of $12,269 and net loss of $35 to the Company for the three months ended June 30, 2019, and revenues of $24,842 and net income of $4,099 for the six months ended June 30, 2019. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2017: Pro forma Three Months Ended June 30, Pro forma Six Months Ended June 30, 2019 2018 2019 2018 Revenues $ 68,648 $ 64,531 $ 129,220 $ 113,197 Net income (loss) attributable to NI Holdings, Inc. 2,508 (397 ) 16,356 6,479 Basic earnings (loss) per share attributable to NI Holdings, Inc. 0.11 (0.02 ) 0.74 0.29 The Company did not reflect any material, nonrecurring pro forma adjustments directly attributable to the business combination in the above pro forma revenue and earnings. These pro forma amounts have been calculated after applying the Companys accounting policies and adjusting the results of Direct Auto to reflect the deferral and amortization of policy acquisition costs and the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from January 1, 2017, with the related income tax effects. In 2018, the Company incurred $118 of acquisition-related costs. These expenses did not impact the pro forma amounts presented above. The Company paid $17,000 in cash consideration to the private shareholders of Direct Auto. The acquisition of Direct Auto did not include any contingent consideration. The following table summarizes the consideration transferred to acquire Direct Auto and the amounts of identified assets acquired and liabilities assumed at the acquisition date: Fair Value of Consideration: Total cash consideration transferred $ 17,000 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: Identifiable net assets: Cash and cash equivalents $ 44,485 Fixed income securities, at fair value 11,414 Equity securities, at fair value 14,634 Premiums and agents' balances receivable 5,849 Accrued investment income 63 Property and equipment 31 Favorable lease contract (included in goodwill and other intangibles) 20 License (included in goodwill and other intangibles) 100 Trade name (included in goodwill and other intangibles) 248 Value of business acquired (included in goodwill and other intangibles) 5,134 Other assets 107 Unpaid losses and loss adjustment expenses (40,967 ) Unearned premiums (15,955 ) Federal income tax payable (1,486 ) Deferred income taxes, net (1,442 ) Accrued expenses and other liabilities (657 ) Total identifiable net assets $ 21,578 Gain on bargain purchase $ 4,578 The fair value of the assets acquired includes premiums and agents balances receivable of $5,849. This is the gross amount due from policyholders and agents, none of which is anticipated to be uncollectible. The Company did not acquire any other material class of receivable as a result of the acquisition of Direct Auto. We have completed our final analysis of the assets and liabilities acquired and assigned fair values to the acquired intangibles consisting of favorable lease contract, state insurance license, Direct Auto trade name, and VOBA intangible assets of $20, $100, $248, and $5,134, respectively. The state insurance license has an indefinite life, while the other intangible assets will be amortized over useful lives of up to five years. The gain realized on bargain purchase of $4,578 from the Direct Auto acquisition is included in fee and other income in the Companys Consolidated Statements of Operations during the three months ended September 30, 2018.