Annual report pursuant to Section 13 and 15(d)

NOTE 5 - INTANGIBLE ASSETS

v3.6.0.2
NOTE 5 - INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2016
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 estimated useful lives.

The components of intangible assets are as follows:

 
 
December 31, 2016
   
December 31, 2015
   
Estimated Useful Lives
 
Proprietary developed software
 
$
677,829
   
$
365,911
   
5
 
Intellectual property, customer list, and acquired contracts
   
3,069,551
     
3,069,551
   
5 – 15
 
Total intangible assets
 
$
3,747,380
   
$
3,435,462
       
Less: accumulated amortization
   
(1,316,269
)
   
(863,925
)
     
 
 
$
2,431,111
   
$
2,571,537
       

Amortization expense related to the above intangible assets was $452,344 and $319,495, respectively, the years ended December 31, 2016 and 2015.

Included in proprietary developed software is $311,917 not yet in service.

The Company expects future amortization expense to be the following:

 
 
Amortization
 
 
     
2017
 
$
355,797
 
2018
   
299,828
 
2019
   
299,828
 
2020
   
282,603
 
2021
   
246,053
 
thereafter
   
947,002
 
Total
 
$
2,431,111