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10. INTANGIBLE ASSETS
 3 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
10. INTANGIBLE ASSETS

Intangible assets as of December 31, 2016 and September 30, 2016 consisted of the following: 

 

 

  Estimated   December 31,     September 30,  
  Useful Lives   2016     2016  
               
Customer contracts 5 years   $ 983,645     $ 983,645  
Technology 5 years     712,500       712,500  
Less: accumulated amortization       (1,665,520 )     (1,652,395 )
    Intangible assets, net     $ 30,625     $ 43,750  

 

Total amortization expense was $13,125 and $35,625 for the three months ended December 31, 2016 and 2015, 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 TransTech intellectual property was fully amortized as of December 31, 2016.

 

The fair value of the RATLab intellectual property associated with the assets acquired was $450,000 estimated by using a discounted cash flow approach based on future economic benefits. 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 RATLab intellectual property was fully amortized as of December 31, 2016.

 

The fair value of the Javelin intellectual property acquired was $262,500 estimated by using a discounted cash flow approach based on future economic benefits associated with the assets acquired. 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.