Quarterly report pursuant to sections 13 or 15(d)

NOTE 6 - INTANGIBLE ASSETS

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NOTE 6 - INTANGIBLE ASSETS
6 Months Ended
Jun. 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:

   
December 31, 2011
   
June 30, 2012
   
Estimated Useful Lives
                 
Proprietary software
  $ 95,445     $ 158,106       5
Intellectual property, customer list, and acquired contracts
    -0-       741,598       5
                       
Total intangible assets
  $ 95,445     $ 899,704        
Less: accumulated amortization
    -0-       6,300        
    $ 95,445     $ 893,404        

Expected amortization of intangible assets is as follows:

2012
  $ 89,963  
2013
    179,228  
2014
    179,228  
2015
    179,228  
2016
    179,228  
Thereafter
    90,028  
    $ 899,704  

Amortization expense included in depreciation and amortization was $6,300 and $ -0- for the three months ended June 30, 2012 and 2011, respectively and $6,300 and $-0- for the 6 months ended June 30, 2012 and 2011, respectively.