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INTANGIBLE ASSETS
 12 Months Ended
Sep. 30, 2011
Notes to Financial Statements  
INTANGIBLE ASSETS

 

Intangible assets as of September 30, 2011 and 2010 consisted of the following:

 

  Estimated   September 30,     September 30,  
  Useful Lives   2011     2010  
               
Customer contracts 5 years   $ 1,433,645     $ 983,645  
Less: accumulated amortization       (290,555 )     (65,576 )
    Intangible assets, net     $ 1,143,090     $ 918,069  

 

Total amortization expense was $224,979 and $65,576 for the years ended September 30, 2011 and 2010, respectively.

 

The fair value of the TransTech intellectual property acquired was $983,645, estimated by using a discounted cash flow approach based on future economic benefits associated with agreements with customers, or through expected continued business activities with its customers. In summary, the estimate was based on a projected income approach and related discounted cash flows over five years, with applicable risk factors assigned to assumptions in the forecasted results.

 

The fair value of the RATLab intellectual property acquired was $450,000 estimated by using a discounted cash flow approach based on future economic benefits associated with agreements with customers, or through expected continued business activities with its customers. In summary, the estimate was based on a projected income approach and related discounted cash flows over five years, with applicable risk factors assigned to assumptions in the forecasted results.