Note 4 - Acquisition

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note 4. Acquisition

On December 22, 2014, the Company acquired the assets of Akimbo to increase market share of prepaid debit card services.  The purchase price for the software, customer list, fixed assets and goodwill was $3 million in common stock of the Company.  The Akimbo operations are included in the Company’s consolidated financial statements from the date of acquisition.  The purchase price for Akimbo was allocated based on the fair values of the assets at the date of acquisition as follows:

Software	$	2,585,385
Equipment and other assets		2,252
Customer list and contracts		396,824
Goodwill		15,539
Trade accounts payable		(300,000	)
Indemnification liability		(450,000	)
Total	$	2,250,000

Goodwill is being amortized over 15 years for tax purposes.