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Intangible assets
 12 Months Ended
Dec. 31, 2011
Intangible assets

10. Intangible assets

 

In 2003, as part of the acquisition of a group of companies, the Company acquired 100% of the outstanding voting common shares of DesalCo, which had an agreement to provide management and engineering services to OC-BVI. The Company attributed $856,356 of the purchase price of the acquisition to the value of this management services agreement, which has no expiration term. Initially the Company determined that this intangible asset had an indefinite life and therefore it was not amortized. However in 2010, as a result of the loss by OC-BVI of its Baughers Bay contract (see Note 8) the Company assigned a useful life of seven years to this asset and began its amortization.

 

The carrying amount of the Belize Water Production and Supply Agreement is being amortized over the 23 year term of the agreementand has a weighted average remaining useful life of 15.4 years.

 

 

 

    December 31,  
    2011     2010  
Cost                
Intangible asset management service agreement   $ 856,356     $ 856,356  
Belize water production and supply agreement     1,522,419       1,522,419  
      2,378,775       2,378,775  
Accumulated amortization                
Intangible asset management service agreement     (285,452 )     (142,726 )
Belize water production and supply agreement     (591,499 )     (525,312 )
      (876,951 )     (668,038 )
Intangible assets, net   $ 1,501,824     $ 1,710,737  

 

 

Amortization for each of the next five years and thereafter is expected to be as follows:

 

2012   $ 208,918  
2013     208,918  
2014     208,918  
2015     208,918  
2016     66,192  
Thereafter     599,960  
    $ 1,501,824