Caliber was engaged to determine the fair value of the intangible assets of Clear-Com for financial reporting purposes.

We assisted the board of directors in determining the fair value of the Company’s common stock for equity stock grants. We applied company forecasts, industry trends, market prices, and historical transactions to determine the value of the company. A key element in the analysis was creating a sum of the parts analysis on the Company’s products that are in different stages of their life cycle.

The Company raised the first tranche of their Series A financing, which includes additional performance based tranches. To determine the fair value of the common stock, we needed to establish the likelihood of future financings and their dilutive effect. We did this by modeling the future value of the Company using Monte Carlo techniques.

Caliber was engaged by Ulthera to provide fair value analysis of certain debt and derivative instruments for financial reporting purposes. The valuations of the instruments were dependent and contingent on expectations of future financing and the pricing of preferred stock issuance. We used Monte Carlo simulation techniques to generate expected enterprise values for Ulthera. Next, we adopted option methodologies to price the future preferred stock issuance using the simulated enterprise values. The values of the debt and derivative instruments were then calculated for each price path generated by the simulation. The fair values were derived from the average values, which were based off of a large number of iterations, ran assuming different scenarios.

The proposed provisions may significantly increase the lease-related assets and liabilities on the balance sheet and will most likely affect recognition (both timing and classification) of lease-related income and expense in the income statement.

The ED proposed a single lessee model that would apply to all leases. Under this model, the lessee’s right-to-use asset would be amortized systematically (ordinarily straight-line) and entities would use the interest method to allocate lease payments between interest expense and a reduction of lease liability, which would result in higher interest expense in earlier periods. A single lessee model will result in accelerated recognition of lease costs and characterization of those costs as amortization and interest expense for all leases.

One concern about the proposed standard is the impact on debt covenants. The ability of companies to comply with their covenants may be jeopardized by the recording of substantial lease liabilities and the recognition of additional interest expense.

The amendment is providing a number of our client’s relief from having to complete a quantitative test.

 ASU 2011-08

The U.S. District Court ruled that the settlement agreement is enforceable, noting that the Agreement clearly states the consideration for the performance required and how it must be paid, and that it clearly defines the structure of the transaction.

While determining the fair market value of the enterprise is a central exercise to any fairness opinion, evaluating the capital structure, preferences and access to capital are also essential for companies like Velocity which make significant use of debt and preferred stock as sources of capital. Our expertise with the complex, highly levered structures enables us to fully understand the implications of these transactions and to communicate this understanding in lay terms to the Board for its consideration.

PRE was founded in 2008 and is an emerging company in a highly competitive space that has seen many new entrants, some very successful, some not so. We are retained by PRE to assist the Company determined its value for management and planning purposes. Critical in the analysis of Companies like PRE is predicting stabilized gross margins and growth potentials.

We reviewed  GT’s client’s financial information and prepared a presentation for the IRS examination team and follow-on presentation to Appeals. Our experience with taxpayer representation throughout the controversy spectrum (from exam through US Tax Court) allows us to efficiently represent GTs clients with a solid understanding of the manner of engagement and the level of support needed at each stage of the controversy.

Caliber is frequently retained by law firms to assist their clients with Tax Services.