Quarterly report pursuant to sections 13 or 15(d)

NOTE 6 - INTANGIBLE ASSETS

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NOTE 6 - INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 6 – INTANGIBLE ASSETS

Intangible assets consist of intellectual property and customer lists acquired and are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives.

The components of intangible assets are as follows:

   
September 30, 2012
   
December 31, 2011
   
Estimated Useful Lives
 
Proprietary software
  $ 252,703     $ 95,445       5  
Intellectual property, customer list, and acquired contracts
    741,598     -0-       5  
                         
Total intangible assets
  $ 994,301     $ 95,445          
Less: accumulated amortization
    52,600       -0-          
    $ 941,701     $ 95,445          

* Estimated pending results of independent appraisal.

Expected amortization of intangible assets is as follows:

2012
 
$
44,894
 
2013
   
198,152
 
2014
   
198,152
 
2015
   
198,152
 
2016
   
198,152
 
Thereafter
   
104,199
 
   
$
941,701
 

Amortization expense included in depreciation and amortization was $46,300 and $ -0- for the three months ended September 30, 2012 and 2011, respectively and $52,600 and $-0- for the nine months ended September 30, 2012 and 2011, respectively.