Net income from operations

  
EXTRA SPACE STORAGE INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)Amounts in thousands, except store and share data, unless otherwise statedOther Investments  
On June 1, 2022 the Company completed the acquisition of Bargold Storage Systems, LLC ("Bargold") for a purchase price of approximately $179.3 million. Bargold leases space in apartment buildings, primarily in New York City and its boroughs, builds out the space as storage units, and subleases the units to tenants. As of June 1, 2022, Bargold had approximately 17,000 storage units with an approximate occupancy of 97%. This acquisition is considered a business combination ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business."  
The following table summarizes the total consideration transferred to acquire Bargold:  


|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
|  |  |
|  |  |
| Total cash paid by the company | $ | 157,302  |  |
| Fair value of Series D Units issued | 16,000  |  |
| Fair value of OP Units issued | 6,000  |  |
| Total consideration transferred | $ | 179,302  |  |

  
  
As part of this acquisition, we recorded an expense of $1,465 related to transaction costs.  
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date. 

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Cash and cash equivalents | $ | 175  |  |
| Fixed assets | 6,411  |  |
| Developed technology | 500  |  |
| Trademarks | 500  |  |
| Customer relationships | 1,870  |  |
| Other assets | 125  |  |
| Accounts payables and accrued liabilities assumed | (1,090) |  |
| Nets asset acquired | 8,491  |  |
| Goodwill | 170,811  |  |
| Total assets acquired | $ | 179,302  |  |

  
The following table summarizes the revenues and earnings related to Bargold since the acquisition date of June 1, 2022, which are included in the Company's consolidated statement of operations for the six months ended June 30, 2022: 

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Total revenues | $ | 1,309  |  |
| Net income from operations | $ | 321  |  |

  
Pro Forma Information  
As noted above, during the six months ended June 30, 2022, the Company acquired Bargold. The following pro forma financial information is based on the combined historical financial statements of the Company and Bargold, however, only includes revenue and presents the Company's results as if the acquisition had occurred on January 1, 2021. Net income was excluded as it was impracticable to report expenses due to the lack of historical accrual basis accounting.  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Six Months Ended June 30, 2022 |  | For the Year Ended December 31, 2021 |
|  | Pro Forma |  | Pro Forma |
| Total revenues | $ | 925,196  |  |  | $ | 1,592,021  |  |

19
