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, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 5 – INTANGIBLE ASSETS

Intangible assets consist of proprietary developed software, intellectual property, customer lists and acquired contracts 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 estimated useful lives.

The components of intangible assets are as follows:

 
 
September 30,
2016
   
December 31,
2015
   
Estimated
Useful Lives
 
Proprietary developed software
 
$
498,956
   
$
365,911
   
5
 
Intellectual property, customer list, and acquired contracts
   
3,069,551
     
3,069,551
   
5 - 15
 
Total intangible assets
 
$
3,568,507
   
$
3,435,462
       
Less: accumulated amortization
   
(1,203,183
)
   
(863,925
)
     
 
 
$
2,365,324
   
$
2,571,537
       

Amortization expense included in depreciation and amortization was $113,086 and $339,258 for the three and nine months ended September 30, 2016 respectively as compared to $145,708 and $300,010 for the three and nine months ended September 30, 2015. Included in proprietary developed software is $133,044 not yet in service.

The Company expects future amortization expense to be the following:

 
 
Amortization
 
Balance of 2016
 
$
119,908
 
2017
   
343,002
 
2018
   
281,369
 
2019
   
281,367
 
2020
   
264,143
 
Thereafter
   
1,075,535
 
 
       
Total
 
$
2,365,324