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8. INTANGIBLE ASSETS

9 Months Ended

Sep. 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
September 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				2,255,898				330,562
Customer relationships			2,200,000				1,066,667				1,133,333
Total Identified Intangibles		$	40,030,038			$	3,322,565			$	36,707,473

		Gross				Accumulated				Carrying
December 31, 2013		Amount				Amortization				Amount
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

		Gross				Accumulated				Carrying
September 30, 2013 (unaudited)		Amount				Amortization				Amount
Trademarks:
Wholesale		$	27,243,578			$	-			$	27,243,578
Retail			2,900,000				-				2,900,000
Patents			2,569,257				2,200,881				368,376
Customer relationships			1,000,000				1,000,000				-
Total Identified Intangibles		$	33,712,835			$	3,200,881			$	30,511,954

Amortization expense for intangible assets was $33,742 and $13,497 for the three months ended September 30, 2014 and 2013, respectively and $101,231 and $39,702 for the nine months ended September 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.