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NOTE 4 - BUSINESS COMBINATION
 12 Months Ended
Dec. 31, 2014
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
NOTE 4 – BUSINESS COMBINATION

On May 6, 2014 SWK entered into an Asset Purchase Agreement with ESC, Inc. d/b/a ESC Software, an Arizona corporation, and Alan H. Hardy and Michael Dobberpuhl in their individual capacity as Shareholders. SWK acquired certain assets of ESC (as defined in the Purchase Agreement). In full consideration for the acquired assets, the Company issued a promissory note in the aggregate principal amount of $350,000.   The purchase was initially allocated, based on the Company’s estimate of fair value, to intangible assets, which are expected to consist primarily of customers lists with an estimated life of five years. Upon completion of an independent valuation, the allocation of the purchase price to customer lists was modified from $350,000 to $294,000, with the excess purchase consideration being allocated to goodwill.

The following summarizes the purchase price allocation:

Customer List
 
$
294,000
 
Goodwill
   
56,000
 
Fair value of net assets acquired
 
$
350,000
 
         
Note to shareholders for acquisition
 
$ 
350,000
 
Total purchase price
 
$
350,000
 

Acquisition costs were approximately $7,500, which are included in general and administrative expenses.

The following unaudited pro forma information does not purport to present what the Company’s actual results would have been had the acquisition occurred on January 1, 2013, nor is the financial information indicative of the results of future operations. 

Pro Forma
 
December 31, 2014
   
December 31, 2013
 
Net sales
 
$
22,198,709
   
$
19,071,788
 
Operating expenses
   
8,323,173
     
6,897,535
 
Income  before taxes
   
497,400
     
234,586
 
Net income
 
$
233,509
   
$
373,567
 
Basic and diluted income per common share
 
$
0.06
   
$
0.10
 

The Company’s consolidated financial statements for the twelve months ending December 31, 2014 include the results of ESC since date of acquisition.  For the twelve months ended December 31, 2014 the ESC operations had a net income before taxes of $45,183 that was included in the Company’s Consolidated Statement of Income, which consisted of approximately $903,650 in revenues and $858,467 in expenses.