5. ACQUISITIONS On March 29, 2013 , Remark Media acquired Pop Factory, LLC ("Pop Factory"), the owner and operator of Bikini.com, a digital beach lifestyle brand providing websites, branded merchandise, and mobile content, for total cash consideration of $ 2,375,000. In connection with the purchase, the two founders, who had remained executives of Pop Factory, entered into one year employment agreements with Pop Factory and noncompetition agreements with the Company. The Company further agreed to use the acquisition date cash to repay the outstanding liabilities of Pop Factory and remit the remaining cash balance forty five days subsequent to closing date. As of June 30, 2013, the Company recorded $23 thousand of accrued expenses relating to this clawback provision in the Purchase Agreement. The total consideration of the transaction was $ 2.4 million in cash. The acquisition was accounted for under the purchase method and, accordingly, the purchase price was allocated to the assets and liabilities based on their estimated fair values on the date of the acquisition. During the three months ended June 30, 2013, the Company finalized the valuation of intangible assets related to this acquisition. Based on the valuation of the Pop Factory acquisition, the intangible assets on the acquisition date were $2.1 million. The condensed consolidated balance sheet for the quarter ended March 31, 2013, was retrospectively adjusted to increase the carrying amount of intangible assets by $1.5 million and decrease the carrying amount of goodwill by $1.5 million. Of the total intangibles acquired, $2.1 million related to domain names and has an amortization period of 12 years. The table below illustrates the allocation of the purchase price over the identifiable assets and assumed liabilities on March 29, 2013. Tangible assets Current assets $ 23,245 Fixed assets 5,282 Total tangible assets 28,527 Intangible assets Customer contracts 33,000 Domain names 2,100,000 Other intangible assets 5,715 Total intangible assets 2,138,715 Acc