NOTE 3 – BUSSINESS COMBINATION

Harsec A/S

On July 19, 2017, the Company acquired 100% of the outstanding shares of Harsec A/S (“Harsec”) in Denmark. Harsec provides cargo security services in the Danish airports and is serving international parcel companies. Consideration of the acquisition for the shares was 10 million Danish Krone (“DKK”) ($1,579 as of the purchase date) in cash of which 90% was paid upon the signing of the purchase contract and 10% paid three months after that. The acquisition was done in order to expend our services to the Danish market.

The acquisition was accounted for as a purchase and accordingly a purchase price was allocated to the assets acquired and liabilities assumed at their fair values.

The following represents the allocation of the purchase price as of the purchase rate in DKK and the translation to United States Dollars as of the purchase date:

	DKK		U.S. Dollars
Cash		3,161		499
Accounts receivable		3,219		508
Other receivables		124		20
Fixed assets		665		105
Goodwill		4,478		707
Total identifiable assets acquired		11,647		1,839

Accounts payable and accrued expenses		1,647		260
Total liabilities assumed		1,647		260
		10,000		1,579

Abydos Consultores de Sistemas S.L.U.

In February 2018, the Company acquired 100% of the outstanding shares of Abydos Consultores de Sistemas S.L.U., a Spanish company. Consideration of the acquisition was 183 euros ($218 as of the purchase date). The acquisition was done in order to expand the services the Company provides in Spain.

The acquisition was accounted for as a purchase and accordingly a purchase price was allocated to the assets acquired and liabilities assumed at their fair values.

The following represents the allocation of the purchase price as of the purchase date in Euros and the translation to United States Dollars as of the purchase date:

	EUR		U.S. Dollars
Cash		29		36
Accounts receivable		142		175
Fixed assets		88		108
Other assets		11		14
Goodwill		188		232
Total identifiable assets acquired		458		565

Notes payables-banks		11		14
Accounts payable		19		23
Accrued expenses and other current liabilities		126		155
Other liabilities		119		147
Total liabilities assumed		275		339
		183		226