Quarterly report pursuant to Section 13 or 15(d)

NOTE 7 - INTANGIBLE ASSETS

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NOTE 7 - INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 7 – 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 five years for all of the intangibiles.

The components of intangible assets are as follows:

   
September 30,
2014
   
December 31,
2013
 
Proprietary developed software
 
$
294,036
   
$
294,036
 
Intellectual property, customer list, and acquired contracts
   
1,044,000
     
694,000
 
                 
Total intangible assets
 
$
1,338,036
   
$
988,036
 
Less: accumulated amortization
   
(477,529
   
(300,156
   
$
860,507
   
$
687,880
 

Amortization expense included in depreciation and amortization was $66,902 and $177,373, respectively, for the three and nine months ended September 30, 2014 as compared to $49,402 and $147,231, respectively, for the three and nine months ended September 30, 2013.

The Company expects future amortization expense to be the following:

   
Amortization
 
Balance of 2014
 
$
66,901
 
2015
   
267,607
 
2016
   
267,607
 
2017
   
165,059
 
2018
   
70,000
 
2019
   
23,333
 
         
Total
 
$
860,507