Quarterly report pursuant to Section 13 or 15(d)

NOTE 5 - INTANGIBLE ASSETS

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NOTE 5 - INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 5 – INTANGIBLE ASSETS

Intangible assets consist of developed intellectual property carried at cost less accumulated amortization and customer lists acquired at fair value 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, 2015
   
December 31, 2014
 
Proprietary developed software
 
$
365,911
   
$
365,911
 
Intellectual property, customer list, and acquired contracts
   
2,487,302
     
988,000
 
                 
Total intangible assets
 
$
2,853,213
   
$
1,353,911
 
Less: accumulated amortization
   
(844,440
   
(544,430
   
$
2,008,773
   
$
809,481
 

The estimated remaining useful lives for proprietary developed software is between 3 to 5 years. The estimated remaining useful lives for intellectual property and customer lists is between 4 to 5 years.

Amortization expense included in depreciation and amortization was $145,708 and $300,010 respectively for the three and nine months ended September 30, 2015 as compared to $66,902 and $177,373 for the three and nine months ended September 30, 2014.

The Company expects future amortization expense to be the following:

   
Amortization
 
Balance of 2015
 
$
133,979
 
2016
   
570,797
 
2017
   
468,250
 
2018
   
373,190
 
2019
   
330,323
 
Thereafter
   
132,234
 
         
Total
 
$
2,008,773