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8. INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2014

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

8.

INTANGIBLE ASSETS

A schedule of intangible assets is as follows:

		Gross				Accumulated				Carrying
June 30, 2014 (unaudited)		Amount				Amortization				Amount
Trademarks:
Wholesale		$	32,343,578			$	-			$	32,343,578
Retail			2,900,000				-				2,900,000
Patents			2,586,460				2,242,157				344,303
Customer relationships			2,200,000				1,046,667				1,153,333
Total Identified Intangibles		$	40,030,038			$	3,288,824			$	36,741,214


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


June 30, 2013 (unaudited)
Trademarks:
Wholesale		$	27,243,578			$	-			$	27,243,578
Retail			2,900,000				-				2,900,000
Patents			2,547,465				2,187,384				360,081
Customer relationships			1,000,000				1,000,000				-
Total Identified Intangibles		$	33,691,043			$	3,187,384			$	30,503,659

Amortization expense for intangible assets was $32,137 and $13,302 for the three months ended June 30, 2014 and 2013, respectively and $65,885 and $26,205 for the six months ended June 30, 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	$	134,353
2016		131,578
2017		127,011
2018		120,867
2019		112,883

As discussed further in Note 13, on December 13, 2013, we acquired certain 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.