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Acquisition of Sumner and La Mancha
 12 Months Ended
Dec. 31, 2011
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]

NOTE 10 – Acquisition of Sumner and La Mancha

 

On December 31, 2011, Sigma Labs acquired 100% of the issued and outstanding common stock of Sumner and La Mancha Company, both companies with services which complement its own. Information related to the acquisition is as follows:

 

Consideration paid:

 

Equity instruments:   $ 350,000  
(35,000,000 common shares of Sigma Labs)        
    $ 350,000  

  

The fair value of the 35,000,000 common shares issued as consideration was determined on the basis of the closing market price of Sigma Labs stock on the acquisition date. The excess cost over net assets acquired of $262,009 was recorded as an intangible asset and is being amortized over 3 years.

 

Assets acquired and liabilities assumed:

 

Cash   $ 12,613  
Accounts receivable, net     153,338  
Property and equipment, net     143  
Intangible – Customer Contacts     262,009  
Accounts payable     (76,632 )
Accrued expenses     (1,471 )
         
    $ 350,000  

 

Revenues and earnings:

 

The following unaudited pro forma summary presents the consolidated results of operations of the combined entities as if the business acquisition had occurred at the beginning of the year on January 1, 2011 and 2010, respectively:

 

    Year Ended December 31,  
    2011     2010  
             
Total Revenues (unaudited)   $1,899,773     $2,202,205  
                 
Net Income (Loss) (unaudited)   $ (935,439 )   $ (301,299 )
                 
Earnings (Loss) per share   $ (0.00 )   $ (0.00 )