Quarterly report pursuant to Section 13 or 15(d)

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

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NOTE 6 - LINE OF CREDIT AND TERM LOAN AND PROMISSORY NOTE
9 Months Ended
Sep. 30, 2015
Line Of Credit And Term Loan [Abstract]  
Line Of Credit And Term Loan [Text Block]
NOTE 6 – LINE OF CREDIT, TERM LOAN AND PROMISSORY NOTES

On August 1, 2013, the Company obtained a line of credit and term loan from the bank. The line of credit expired on July 31, 2015 and was automatically renewed for an additional year. The agreement includes a borrowing base calculation tied to accounts receivable with a maximum availability of $750,000 at prime plus 1.75% interest (5% at September 30, 2015).  The line is collateralized by substantially all of the assets of the Company and 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. The Company was in compliance with all loan covenants at September 30, 2015.

The two year term loan for $350,000 matured on July 31, 2015. Monthly payments were $15,776 including interest at 8%. The term loan was collateralized by substantially all of the assets of the Company and was guaranteed by the Company’s Chief Executive Officer, Mr. Meller.  The term loan was paid off in full on July 3, 2015.

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 “ESC Note”). The ESC Note matures on April 1, 2019. Monthly payments are $6,135 including interest at 2% per year. At September 30, 2015 the outstanding balance was $260,059. 

On March 11, 2015, SWK acquired certain assets of 2000 SOFT, Inc. d/b/a Accounting Technology Resource (ATR) pursuant to an Asset Purchase Agreement for cash of $80,000 and a promissory note for $175,000 (the “ATR Note”). The note matures on February 1, 2018.  Monthly payments are $5,012 including interest at 2% per year. At September 30, 2015 the outstanding balance was $146,557.

On July 6, 2015, SWK acquired certain assets of ProductiveTech Inc. (PTI) pursuant to an Asset Purchase Agreement cash of $500,000 and a promissory note for $600,000 (the “PTI Note”).  The note is due in 60 months from the closing date and bears interest at a rate of two and one half (2.5%) percent.  The monthly payments including interest are $10,645. At September 30, 2015 the outstanding balance was $581,008.

At September 30, 2015, twelve (12) months of future payments of current and long term debt are as follows:

2016
 
$
241,315
 
2017
   
246,771
 
2018
   
222,151
 
2019
   
172,145
 
2020
   
105,242
 
Total
 
$
987,624