P10 Industries Inc. (PX)

[bob4uall]

Re: "5-year lockup period"

I admit I don't understand the restrictions of the lock-up, so here it is, from the audited Dec. 31, 2017 Annual Report:

“Intangibles and Goodwill

“The Company accounts for business combinations in accordance with FASB ASC 805, Business Combinations (ASC 805), which allows for an alternative accounting method to be utilized in the recognition of identifiable intangible assets acquired in a business combination. The Company acquired RCP 2 for consideration valued at $102.6 million including subordinated notes valued at $78.7 million, our common stock subject to a five year lock up period with a fair value of $11.3 million, and assumed bank loans of $12.6 million. The Company assumed net liabilities of ($0.7) million and asset management fund contracts valued at $42.1 million. The asset management fund contracts have been recorded as an intangible asset and are being amortized ratably over the period of expected revenue from these contracts through 2026. The consideration we paid in the RCP 2 transaction included $61.3 million in Consideration Paid in Advance for the RCP 3 transaction. This amount is included in consideration paid in the valuation of RCP 3, which closed on January 3, 2018.”