3 . Business Combination On January 30, 2015, the Company completed the acquisition of 100 % of the outstanding securities of DivX for total consideration of approximately $ 59.0 million. On closing, the Company issued 35,890,216 shares of common stock of the Company valued at $ 31.9 million on the issuance date and a $ 27 million two -year convertible promissory note (the ?Note?). Upon receiving shareholder approval, expected prior to June 30, 2015, the Note will be convertible into shares of the Company's common stock (?Conversion Shares?) at a conversion price of approximately $ 1.045 per share, subject to adjustment for stock splits and similar events, on the terms set forth in the Merger Agreement (?Merger Agreement?). The Note bears interest at the rate of 6 % per annum and matures on January 2, 2017 (the ?Maturity Date?), subject to earlier conversion of the Note into shares of common stock automatically upon the receipt of applicable stockholder and regulatory approvals. In the event the Note has not been converted prior to the Maturity Date, then in addition to principal and accrued interest on the Note (the ?Repayment Amount?), the Company is obligated to pay the holder an amount in cash equal to the amount, if any, by which the fair market value (as defined in the Merger Agreement) of the Conversion Shares the holder would have received on the date immediately preceding the Maturity Date exceeds the Repayment Amount. The acquisition was accounted for using the purchase method of accounting in accordance with Accounting Standards Codification 805 ? Business Combinations . Accordingly, the results of operations of DivX have been included in the accompanying condensed consolidated financial statements since the date of acquisition. 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 remain preliminary as of March 31, 2015, and using assumptions that the Compan