Annual report pursuant to Section 13 and 15(d)

Note 3 - Acquisitions (Tables)

v3.5.0.2
Note 3 - Acquisitions (Tables)
12 Months Ended
Dec. 31, 2015
Note 3 - Acquisitions (Tables) [Line Items]  
Business Acquisition, Pro Forma Information [Table Text Block] The following table presents the unaudited pro forma results of the Company for the years ended December 31, 2015 and 2014 as if the acquisitions of Storycode and SwellPath occurred on January 1, 2014. The pro forma results include estimates and assumptions which management believes are necessary. However, pro forma results do not include an anticipated cost savings or their effects of the planned integration of Storycode and SwellPath and are not necessarily indicative of the result that would have occurred if the business combination had been in effect on the dates indicated, or which may result in the future. The unaudited pro forma revenue and net income for Storycode was $145,712 and $6,042, respectively, for the pre-acquisition period. The unaudited pro forma revenue and net income for SwellPath was $472,442 and $904, respectively, for the pre-acquisition period.

   
Unaudited Pro Forma Results of Operations for the Acquisitions of Storycode and SwellPath
 
 
 
For the Year Ended
 
 
 
December 31, 2015
(Audited)
   
December 31, 2014
(Audited)
 
 
           
Revenues
 
$
13,408,046
   
$
13,455,455
 
(Loss) income
 
$
(7, 987,605
)
 
$
1,254,127
 
Net (loss) income from operations
 
$
( 17,104,343
)
 
$
1,230,637
 
Basic and diluted (loss) income per share
 
$
(0. 22
)
 
$
0.03
 
Storycode [Member]  
Note 3 - Acquisitions (Tables) [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block] The Company’s allocation of the purchase price in connection with the acquisition of Storycode was calculated as follows:

Cash
 
$
300,000
 
Stock consideration
   
2,604,000
 
Contingent consideration
   
2, 733,334
 
Total consideration
 
$
5,637,334
 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] The consideration transferred for the Storycode acquisition was allocated across the net assets of the Company as follows:

Description
 
Fair Value
   
Weighted Average Useful Life
(in years)
 
Cash
 
$
100,000
       
Deferred revenue
   
(59,384
)
     
Trade name
   
330,000
   
7
 
Customer relationship
   
900,000
   
5
 
Non-compete agreement
   
61,000
   
1.5
 
Due from seller
   
46,368
       
Goodwill
   
4,259,350
       
Total consideration
 
$
5,637,334
       
SwellPath [Member]  
Note 3 - Acquisitions (Tables) [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block] The Company’s allocation of the purchase price in connection with the acquisition of SwellPath was calculated as follows:

Cash
 
$
600,000
 
Stock consideration
   
2,325,000
 
Contingent consideration
   
2,189,279
 
Total consideration
 
$
5,114,279
 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] The consideration transferred for the SwellPath acquisition was allocated across the net assets of the Company as follows:

Description
 
Fair Value
   
Weighted Average Useful Life
(in years)
 
Cash
 
$
257,601
       
Deferred revenue
   
(67,950
)
     
Accrued liability
   
(51,195
)
     
Deferred tax liability
   
( 620,767
)
     
Trade name
   
10,000
   
3
 
Customer relationship
   
1,560,000
   
5
 
Non-compete agreement
   
67,000
   
1.5
 
Goodwill
   
3,959,590
       
Total consideration
 
$
5,114,279