Company: TEM
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025603
Chunk: 329

Company: Tempus AI, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 329
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 capital deficiency of $0.5 million.The following table summarizes the allocation of the aggregate purchase price of the Highline Acquisition (in thousands): 

        Cash
         
        $
        3,601

        Accounts receivable

        1,743

        Prepaid expenses and other current assets

        778

        Accounts payable

        (1,124
        )

        Accrued expenses

        (31
        )

        Other current liabilities

        (3,129
        )

        Fair value of identifiable net assets acquired

        1,838

        Goodwill

        26,062

        Trade names

        8,000

        Customer relationships

        2,750

        Net intangible assets

        36,812

        Total Acquisition Price
         
        $
        38,650

      The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributed to the assembled workforce of the acquired company and expected growth from vertical integration of Highline's clinical trial services. As the Highline Acquisition was a stock purchase, the related goodwill created as a result of the acquisition is not deductible for tax purposes.The trade names and customer relationships intangible assets were established with seven year and three year remaining useful lives, respectively.AKESOgenOn December 9, 2019, in accordance with a stock purchase agreement, the Company purchased 100% of the issued and outstanding shares of capital stock of AKESOgen for $30.3 million, with an adjustment for working capital. The transaction included a contingent consideration arrangement to transfer shares of non-voting common stock to the former owners with an acquisition date fair value of $3.4 million, which the Company recognized under long-term liabilities. The consideration was to be paid out based on AKESOgen's 2020 revenue, with a maximum payout of 726,979 shares of non-voting common stock. On May 19, 2021, the Company entered into a settlement agreement with the former owners of AKESOgen related to the contingent consideration, whereby $7.5 million was paid in cash and 145,466 shares of non-voting common stock were issued on December 9, 2022 and subsequently repurchased by the Company in January 2023.

159

4.BALANCE SHEET COMPONENTS Property and Equipment, Net The following summarizes property and equipment, net as of December 31, 2024