The purchase price allocation was obtained from an independent valuation firm The following sets forth the components of the final purchase price allocation:
| Purchase Price | ||||
| Cash payment | $ | 3,500,000 | ||
| Warranty expense | 10,000 | |||
| Total purchase price | $ | 3,510,000 | ||
| Assets Purchased | ||||
| Inventory | $ | 71,700 | ||
| Fixed assets | 150,000 | |||
| Patents | 2,848,300 | |||
| Trademarks | 440,000 | |||
| Total Assets Acquired | $ | 3,510,000 | ||