Quarterly report pursuant to sections 13 or 15(d)

NOTE 4 - INTANGIBLE ASSETS

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NOTE 4 - INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 4 – 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 five year estimated useful lives.

The components of intangible assets are as follows:

   
September 30,
2013
   
December 31,
2012
 
Proprietary developed software
 
$
294,036
   
$
294,036
 
Intellectual property, customer list, and acquired contracts
   
694,000
     
694,000
 
                 
Total intangible assets
 
$
988,036
   
$
988,036
 
Less: accumulated amortization
   
250,754
     
103,523
 
   
$
737,282
   
$
884,513
 

Amortization expense included in depreciation and amortization was $49,402 and $147,231 for the three and nine months ended September 30, 2013 as compared to $46,300 and $52,600 for both the three and nine months ended September 30, 2012.

The Company expects amortization expense to be the following:

    Amortization  
Balance of 2013
  $ 50,376  
2014
    197,607  
2015
    197,607  
2016
    197,607  
2017
    94,085  
         
Total
  $ 737,282