Annual report pursuant to Section 13 and 15(d)

ACQUISITION OF TRECORA CHEMICAL, INC. (formerly SSI Chusei, Inc.) (Tables)

ACQUISITION OF TRECORA CHEMICAL, INC. (formerly SSI Chusei, Inc.) (Tables)

12 Months Ended

Dec. 31, 2015

ACQUISITION OF TRECORA CHEMICAL, INC. (formerly SSI Chusei, Inc.) [Abstract]

The following table summarizes the consideration paid for TC (in thousands):

Cash paid at closing	$	2,902
Cash paid for working capital adjustment		1,916
Debt		70,000
Total purchase consideration	$	74,818

Schedule of Allocation of Purchase Price

The allocation of the aggregate purchase price is as follows (in thousands):

Purchase Price				$	74,818

Cash	$	107
Trade receivables		2,821
Inventories		3,339
Prepaid expenses and other assets		743
Plant, pipeline and equipment		23,973
Other intangible assets		26,706
Accounts payable		(1,074	)
Accrued liabilities		(1,121	)
Other liabilities		(1,759	)
Long-term debt, net of current portion		(667	)		53,068
Goodwill				$	21,750

Schedule of Indefinite Intangible Assets

The components of the other intangible assets listed in the table above, based upon a third party appraisal, were as follows (in thousands):

Identifiable Intangible Asset	Value		Life (years)
Customer Relationships	$	16,852		15
Non-compete Agreements		94		5
Licenses and Permits		1,471	various
Trade Name		2,158	indefinite
Developed Technology		6,131		10
Total	$	26,706
Weighted average amortization period				12.5

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information reflects the consolidated results of operation of the Company as if the Acquisition had taken place on January 1, 2013 (in thousands):

	Years Ended December 31,
	2014		2013
Sales	$	308,966	$	259,348
Net Income	$	16,623	$	20,223