NOTE 9 - BUSINESS COMBINATION

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

NOTE 9 – BUSINESS COMBINATION

During 2015 SWK completed four acquisitions. On March 11, 2015 SWK entered into an Asset Purchase Agreement with 2000 SOFT, Inc. d/b/a ATR, a California corporation (“ATR”). On July 6, 2015 SWK entered into an Asset Purchase Agreement with ProductiveTech, Inc. (“PTI”), a south New Jersey corporation. As of September 30, 2016, the prior owners of PTI owed the Company $9,978 related to amounts collected by the prior owners subsequent to acquisition but owed to the Company and this amount is included in prepaid expenses and other current assets. On October 1, 2015 SWK entered into an Asset Purchase Agreement with The Macabe Associates, Inc., a Washington corporation (“Macabe”). On October 19, 2015 SWK entered into an Asset Purchase Agreement with Oates & Company, a North Carolina reseller (“Oates”). As of September 30, 2016, the prior owners of Oates owed the Company $80,019 related to amounts collected by the prior owner subsequent to acquisition but owed to the Company and this amount is included in prepaid expenses and other current assets.

The following unaudited pro forma information does not purport to present what the Company’s actual results would have been had the acquisitions occurred on January 1, 2015, nor is the financial information indicative of the results of future operations. The following table represents the unaudited consolidated pro forma results of operations for the nine months ended September 30, 2015 as if the acquisitions occurred on January 1, 2015. Operating expenses have been increased for the amortization expense associated with the estimated fair value adjustment of definite lived intangible assets.

Pro Forma	Nine Months Ended September 30, 2015
Net sales	$	23,376,818
Operating expenses		9,308,420
Income  before taxes		605,460
Net income	$	553,827
Basic and diluted income per common share	$	0.13

For the nine months ended September 30, 2015 the pro-forma results above include two months of pro-forma results of ATR, six months of pro-forma results for PTI, nine months of pro-forma results for Macabe, and nine months of pro-forma results for Oates.