Quarterly report pursuant to sections 13 or 15(d)

NOTE 5 - BUSINESS COMBINATION

v2.4.0.6
NOTE 5 - BUSINESS COMBINATION
3 Months Ended
Mar. 31, 2013
Business Combination Disclosure [Text Block]
NOTE 5 – BUSINESS COMBINATION

In June 2012, the Company’s wholly-owned subsidiary, SWK Technologies, Inc., acquired certain assets of HighTower Inc. for total consideration of $442 in cash and noncash assumption of deferred revenue obligation of $300.

The Company’s condensed consolidated financial statements for the three months ended March 31, 2013 include the results of Hightower. The following unaudited pro forma information for the three months ended March 31, 2012 does not purport to present what the Company’s actual results would have been had the acquisition occurred on January 1, 2011, 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 three months ended March 31, 2012 as if the acquisition occurred on January 1, 2011.  Operating expenses have been increased for the estimated amortization expense associated with the fair value adjustment as of March 31, 2012 of expected definite lived intangible assets, for a net adjustment of $41 in the three months ended March 31, 2012.

  Pro Forma (in thousands)
       
   
 
Three Months Ended
March 31, 2012
 
Net sales
 
$
3,504
 
Operating expenses
   
2,563
 
Income (loss) before taxes
   
(807
Net income (loss)
 
$
(807
Basic income (loss) per common share
 
$
(0.01
)
Diluted income (loss) per common share
 
$
(0.01
)