Intangible Assets

9 Months Ended

Sep. 30, 2011

The Company has acquired certain intangible assets, which include: customer lists, trademarks, patents, and copyrights. The customer lists are being amortized over a 3 year period based on management’s best estimate of the expected useful life. The costs of trademarks, patents and copyrights are amortized over 3 to 7 years based on their estimated useful life.

The Company’s intangible assets and related amortization included the following:

	As of September 30, 2011				As of December 31, 2010				Weighted-Avg.
	Gross Carrying		Accumulated		Gross Carrying		Accumulated		Amortization
	Amount		Amortization		Amount		Amortization		Period

Customer lists	$	235,000	$	109,000	$	235,000	$	50,000	3 years
Trademarks, patents, and copyrights		2,312,000		1,451,000		2,053,000		1,166,000	7 years
Total	$	2,547,000	$	1,560,000	$	2,288,000	$	1,216,000

Amortization expense for the three and nine months ended September 30, 2011 and 2010 was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
Customer lists	$	20,000	$	13,000	$	59,000	$	38,000
Trademarks, patents, and copyrights		94,000		60,000		285,000		181,000

Total trademarks and intangibles	$	114,000	$	73,000	$	344,000	$	219,000

Amortization expense is included in selling, general and administrative expenses.