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8. INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2014

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

8.

INTANGIBLE ASSETS

A schedule of intangible assets is as follows:

		Gross				Accumulated				Carrying
March 31, 2014 (unaudited)		Amount				Amortization				Amount
Trademarks:
Wholesale		$	32,343,578			$	-			$	32,343,578
Retail			2,900,000				-				2,900,000
Patents			2,584,855				2,228,415				356,440
Customer relationships			2,200,000				1,026,667				1,173,333
Total Identified Intangibles		$	40,028,433			$	3,255,082			$	36,773,351


December 31, 2013
Trademarks:
Wholesale		$	32,343,578			$	-			$	32,343,578
Retail			2,900,000				-				2,900,000
Patents			2,584,855				2,214,667				370,188
Customer relationships			2,200,000				1,006,667				1,193,333
Total Identified Intangibles		$	40,028,433			$	3,221,334			$	36,807,099


March 31, 2013 (unaudited)
Trademarks:
Wholesale		$	27,243,578			$	-			$	27,243,578
Retail			2,900,000				-				2,900,000
Patents			2,521,304				2,174,082				347,222
Customer relationships			1,000,000				1,000,000				-
Total Identified Intangibles		$	33,664,882			$	3,174,082			$	30,490,800

Amortization expense for intangible assets was $33,748 and $12,903 for the three months ended March 31, 2014 and 2013, respectively. The weighted average amortization period for patents is 15 years.

Estimate of Aggregate Amortization Expense for the years ending December 31,:

2015		$	134,246
2016			131,471
2017			126,904
2018			120,760
2019			112,776

As discussed further in Note 13, during late 2013, we acquired substantially all the assets of Kommonwealth, Inc. including the Creative Recreation trademark. As part of this acquisition, we recorded the fair value of the trademark of $5.1 million and the fair value of the customer relationship of $1.2 million. The trademark is an indefinite-lived intangible asset and will be reviewed annually for impairment or as events occur that would require a more frequent review. The customer relationship intangible will be amortized over 15 years.