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INTANGIBLE ASSETS (Parent Company)
 12 Months Ended
Dec. 31, 2011
Parent Company
  
NOTE D - INTANGIBLE ASSETS

In 2000, WFN acquired the stock of WFN Women’s Financial Network, Inc. (“WFNI”) and HerDollar.com, Inc., respectively, companies in the development stage which had yet to commence principal operations, had no significant revenue and had assets consisting principally of websites, content and domain names, for aggregate consideration of $2,310,000, including costs. The transactions have been accounted for as purchases of assets consisting of domain name, website and content, and a non-compete agreement (the “Acquired Intangible Assets”). Related deferred tax assets attributable to net operating loss carryforwards of the acquired companies and deferred tax liabilities attributable to the excess of the statement bases of the acquired assets over their tax bases have been reflected in the accompanying consolidated financial statements as an adjustment to the carrying amount of such intangibles (see Note E).

 

Intangible assets consist of the following:

 

    December 31, 2011     December 31, 2010  
   

Gross

Carrying

Amount

    

Accumulated

Amortization

    

Gross

Carrying

Amount

    

Amortization

Accumulated

  
Amortizable assets:                        
Website, content and non-compete   $ 1,850,000     $ 1,850,000     $ 1,850,000     $ 1,850,000  
Retail brokerage accounts     2,638,000       2,600,000       2,638,000       2,590,000  
                                 
    $ 4,488,000     $ 4,450,000     $ 4,488,000     $ 4,440,000  
Unamortized intangible assets:                                
Domain name/intellectual property   $ 600,000             $ 600,000          
                                 
Amortization expense           $ 10,000             $ 2,000  

 

During 2010, the Company recorded an impairment charge and wrote down the carrying value of its unamortized intangible assets by $150,000 representing the excess of carrying value over its fair value. Such write down was due to a continuing decline in the Company’s revenue. The Company valued the domain name using the income approach methodology known as the relief from royalty method. The premise behind the valuation of these assets is that a buyer would be willing to pay a royalty for the right to use an established or recognized trade name in order to gain market acceptance, which a product or service otherwise might not enjoy.