Note 6 - Goodwill

12 Months Ended

Sep. 28, 2013

Disclosure Text Block Supplement [Abstract]

Goodwill Disclosure [Text Block]

6. GOODWILL

As of September 28, 2013 and September 29, 2012, we had goodwill of $4,487,546 and $4,610,615, respectively. The goodwill is associated with the medical segment.

On December 9, 2011, we acquired, through a new wholly-owned subsidiary, substantially all of the assets of Old M.C. Healthcare. The following table is a reconciliation of the carrying amount of goodwill resulting from the M.C. Healthcare asset acquisition on December 9, 2011 and September 28, 2013. Under Canadian tax law, we expect 75%, or approximately $2,000,000, of the goodwill acquired in connection with the asset acquisition to be deductible for tax purposes. See Note 2.

Beginning balance at October 1, 2011	$	1,924,131
Asset acquisition on December 9, 2011		6,529,885
Adjustment for deferred taxes		53,149
Adjustment to increase inventories to fair market value		(160,281	)
Adjustment to allocate total consideration to other intangibles based on valuation		(3,971,748	)
Adjustment to record contingent consideration		68,166
Adjusted Goodwill at December 9, 2011		4,443,302
Increase in foreign currency exchange rate		167,313
Goodwill at September 29, 2012		4,610,615
Decrease in foreign currency exchange rate		(123,069	)
Goodwill at September 28, 2013	$	4,487,546