This excerpt taken from the ADAM 8-K filed Nov 13, 2006.
Note C. Unaudited Pro Forma Condensed Combined Consolidated Statements of Operations
The accompanying unaudited pro forma condensed combined consolidated statements of operations have been prepared assuming the acquisition occurred as of January 1, 2006 and 2005, respectively and reflects the following pro forma adjustments:
(3) To record amortization of deferred financing fees over the terms of the term notes.
(4) To record amortization of intangible assets resulting from the allocation of the cost of acquisition. The acquired intangibles are being amortized on a straight-line basis over 15 years for customer lists and 3 years for developed technology.
(5) To reverse amortization of intangible asset - customer list that was being amortized on OBIs historical financial statements and revalued in purchase accounting.
(6) To record the elimination of preferred interest expense related to preferred stock debt.
(7) To record the reduction of interest income related to ADAMs investments on the cash used at closing for the acquisition.
(8) To record the additional interest expense related to the issuance of the term loan in the amount of $20 million with interest calculated at Libor + 4% and issuance of $5 million of convertible notes with interest calculated at Libor + 2.5%.
(9) To record stock-based compensation expense related to options issued at closing to employees.