Quarterly report pursuant to Section 13 or 15(d)

NOTE 5 - INTANGIBLE ASSETS

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NOTE 5 - INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2018
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:


   

June 30,

2018

   

December 31,

2017

   

Estimated

Useful Lives

 

Proprietary developed software

  $ 1,522,094     $ 1,192,109     5 - 7  

Intellectual property, customer list, and acquired contracts

    4,686,014       3,129,551     5 - 15  

Total intangible assets

  $ 6,208,108     $ 4,321,660        

Less: Accumulated amortization

    (1,850,136

)

    (1,681,203

)

     
    $ 4,357,972     $ 2,640,457        

Amortization expense included in depreciation and amortization expense was $97,437 and $168,933 for the three and six months ended June 30, 2018 respectively as compared to $91,036 and $202,886 for the three and six months ended June 30, 2017. Included in proprietary developed software is $1,037,104 for the six months ended June 30, 2018 and $707,118 for the year ended December 31, 2017 not yet in service. The Company expects the proprietary developed software to be placed in service in 2018, and has included the amortization in the future amortization schedule accordingly. 


The Company expects future amortization expense to be the following:


   

Amortization

 

Balance of 2018

  $ 298,638  

2019

    745,435  

2020

    727,444  

2021

    690,893  

2022

    624,191  

Thereafter

    1,271,371  
         

Total

  $ 4,357,972