NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE

12 Months Ended

Dec. 31, 2014

Line Of Credit And Term Loan [Abstract]

Line Of Credit And Term Loan [Text Block]

NOTE 6 – LINE OF CREDIT, TERM LOAN AND PROMISSORY NOTE

On August 1, 2013, the Company obtained a line of credit and term loan from the bank. The term of the line is for two years and expires on July 31, 2015. The agreement included a borrowing base calculation tied to accounts receivable with a maximum availability of $750,000 at prime plus 1.75% interest (5% at December 31, 2014). The line is collateralized by substantially all of the assets of the Company and is guaranteed by the Company’s Chief Executive Officer, Mr. Meller. The credit facility requires the Company to pay a monitoring fee of $1,000 monthly. At December 31, 2014, the Company was in compliance with the required financial covenants the fixed charge ratio and debt to net worth. As of December 31, 2014, the availability under this line was $750,000.

The term loan is for $350,000 for two years and matures on July 31, 2015. Monthly payments are $15,776 including interest at 8%. The term loan is collateralized by substantially all of the assets of the Company and is guaranteed by the Company’s Chief Executive Officer, Mr. Meller. At December 31, 2014 the outstanding balance was $106,559.

On May 6, 2014, SWK acquired certain assets of ESC, Inc. pursuant to an Asset Purchase Agreement for a promissory note in the aggregate principal amount of $350,000 (the “Note”) and matures on April 1, 2019. Monthly payments are $6,135 including interest at 2% per year. The Note is due sixty (60) months from the closing date, as defined in the Purchase Agreement and bears interest at a rate of two percent (2%) per annum. At December 31, 2014 the outstanding balance was $310,945.

At December 31, 2014, future payments of term loan and promissory note are as follows over each of the next five fiscal years:

2015	$	174,578
2016		69,392
2017		70,793
2018		72,221
2019		30,521
Total	$	417,504