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Note 5 - Intangible Assets
9 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

5. INTANGIBLE ASSETS:


Intangible assets consist of brand, customer relationships, surname domain names and our portfolio of domain names. As reflected in the table below, these balances are being amortized on a straight-line basis over the life of the intangible assets, except for the surname domain names and portfolio domain names, which have been determined to have an indefinite life and which are tested annually for impairment.


A summary of acquired intangible assets for the three months ended September 30, 2014 is as follows:


   

Brand

7 years

   

Customer

relationships

4 – 7 years

   

Surname

domain

names

indefinite

life

   

Direct

navigation

domain

names

indefinite

life

   

Total

 
                                         

Net book value, June 30, 2014

  $ 137,830     $ 756,460     $ 11,529,518     $ 1,955,346     $ 14,379,154  

Sales of domain names

                (1,298

)

    (9,410

)

    (10,708

)

Amortization expense

    (19,610

)

    (87,620

)

                (107,230

)

Net book value, September 30, 2014

  $ 118,220     $ 668,840     $ 11,528,220     $ 1,945,936     $ 14,261,216  

A summary of acquired intangible assets for the nine months ended September 30, 2014 is as follows:


   

Brand

7 years

   

Customer

relationships

4 – 7 years

   

Surname

domain

names

indefinite

life

   

Direct

navigation

domain

names

indefinite

life

   

Total

 
                                         

Net book value, December 31, 2013

  $ 224,650     $ 1,107,700     $ 12,096,712     $ 1,974,166     $ 15,403,228  

Sales of domain names

                (3,893

)

    (15,684

)

    (19,577

)

Impairment of indefinite life intangible assets

                (564,599

)

    (12,546

)

    (577,145

)

Amortization expense

    (106,430

)

    (438,860

)

                (545,290

)

Net book value, September 30, 2014

  $ 118,220     $ 668,840     $ 11,528,220     $ 1,945,936     $ 14,261,216  

As of September 30, 2014, the accumulated amortization for the definite life intangibles was $5.6 million.


With regard to indefinite life intangible assets, as part of our normal renewal process we assessed that all domain names that were acquired in the June 2006 acquisition of Mailbank.com Inc. that were up for renewal should be renewed. Accordingly, during the three months ended September 30, 2014, no impairment on indefinite life assets was recorded. For the nine months ended September 30, 2014, domain names, with a book value of $0.6 million, were not renewed and were recorded as an impairment of indefinite life intangible assets. No impairment was recorded on indefinite-life intangible assets during the three and nine months ended September 30, 2013.