Quarterly report pursuant to sections 13 or 15(d)

NOTE 5 - BUSINESS COMBINATION

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NOTE 5 - BUSINESS COMBINATION
6 Months Ended
Jun. 30, 2013
Business Combinations [Abstract]  
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 $741,598, including $441,964 in cash and noncash assumption of deferred revenue obligation of $299,634.

The Company’s condensed consolidated financial statements for the three months and six months ended June 30, 2013 include the results of Hightower. The Company’s condensed consolidated financial statements for the three months ended June 30, 2012 also include the results of Hightower. The following unaudited pro forma information for the six months ended June 30, 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 six months ended June 30, 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 June 30, 2012 of expected definite lived intangible assets, for a net adjustment of $41,000for the six months ended June 30, 2012.

  Pro Forma      
   
 
Six Months Ended
June 30, 2012
 
Net sales
 
$
6,575,266
 
Operating expenses
   
4,179,658
 
Income (loss) before taxes
   
(1,140,922
Net income (loss)
 
$
(1,140,922
Basic income (loss) per common share
 
$
(0.01
)
Diluted income (loss) per common share
 
$
(0.01
)