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01/16/2020

the year ending June 30, 2016.

the year ending June 30, 2016.
In the third quarter of 2016, we completed the acquisition of the remaining portion of the business of XO Group, LLC, the principal operations and technology provider for our business acquired in the fourth quarter of 2015, under the terms of the Acquisition Agreement, pursuant to which we paid $6,750,832, after deducting underwriting discounts and offering expenses, to acquire a 33.5% operating and technology control interest in XO Group, LLC, which shares outstanding shares were valued at approximately $1.28 per share. The amount paid under the Acquisition Agreement was recorded in stockholders’ equity and the purchase consideration was classified in stockholders’ equity on the consolidated balance sheets. Accordingly, such transaction is classified as a stock-based payment during the year ended June 30, 2016.
In the third quarter of 2016, we terminated the leasehold interest on the office space in which these programs were offered, as well as the leases for the computers, servers and other equipment utilized by these programs.
In the second quarter of 2016, in connection with our acquisition of the remaining portion of the business of Digital Ocean, Inc., we entered into a long-term strategic agreement with Digital Ocean, Inc. that provides for an agreement whereby we will contribute certain technology and intellectual property assets pursuant to an agreement dated as of December 29, 2014 for use by Digital Ocean, in combination with the other assets transferred to us in connection with the closing of the acquisition, and in aggregate amount not to exceed $100,000. This agreement provides as follows: (i) in exchange for the technology and other intellectual property contributed, we will receive a long-term cash payment of $250,000 per year in perpetuity; (ii) upon termination for any reason, at our election and without any right of reimbursement, prior to the next fiscal year, we will be entitled to certain net royalties, based on our gross revenues for the period prior to termination; (iii) we will contribute such technology and other intellectual property, and in aggregate amount not to exceed $100,000 (which shall be in cash, without interest) to Digital Ocean, and in the event we do not make such contribution (a) we will be entitled to a cash payment of $25,000; (b) no amounts will be due to us until the date on which we achieve minimum viable product sales of our offerings in digital ocean’s marketplace, or (c) we will be entitled to a refund in the event of termination.
In the second quarter of 2016, we completed the acquisition of the remaining portion of the business of BitGo, Inc., the principal operations of which was the Bitcoin wallets service for digital wallets.
In the second quarter of 2016, in connection with the purchase of the remainder of the business of Coinflip, Inc., we contributed all of our Bitcoin wallet assets to our parent company, BitGo. We have been granted an option to purchase an additional 4.0% of BitGo stock at the purchase price of $0.60 and, due to the sale of approximately 12,500,000 shares (4.0%) from Coinflip in connection with the exchange of such shares for the remaining shares of Coinflip in April 2016, the shares underlying the option were deemed a “tainted security” and may not be reissued when desired.
In the second quarter of 2016,