XML 41 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT (Tables)
 12 Months Ended
Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets [Table Text Block]

The changes in the carrying amount of intangible assets for the year ended December 31, 2012 and 2011 were as follows:

 

    2012     2011  
Balance at beginning of year   $ 5,551,149     $ 6,494,134  
Amortization expense     (919,572 )     (942,985 )
Balance at end of year   $ 4,631,577     $ 5,551,149  
Schedule of Intangible Assets and Goodwill [Table Text Block]

The Company has recorded the fair value of the acquired identifiable intangible assets, which are subject to amortization, using the income approach. The following table sets forth the components of these intangible assets as of December 31, 2012 and 2011:

 

          As of December 31, 2012  
    Estimated     Adjusted           Net  
    Useful     Carrying     Accumulated     as of  
    Life     Amount     Amortization     12/31/2012  
                         
Trade name     20 years     $ 704,458     $ (229,975 )   $ 474,483  
Patents and copyrights     17 years       1,117,842       (396,575 )     721,267  
Non-compete agreements     5 years       310,000       (206,667 )     103,333  
Developed technology     7 years       3,941,310       (2,760,370 )     1,180,940  
Backlog     3 years       303,400       (303,400 )     -  
Non-contractual customer relationships     15 years       3,268,568       (1,117,014 )     2,151,554  
            $ 9,645,578     $ (5,014,001 )   $ 4,631,577  

 

    As of December 31, 2011  
    Adjusted           Net  
    Carrying     Accumulated     as of  
    Amount     Amortization     12/31/2011  
                   
Trade name   $ 704,458     $ (186,390 )   $ 518,068  
Patents and copyrights     1,117,842       (339,298 )     778,544  
Non-compete agreements     310,000       (144,667 )     165,333  
Developed technology     3,941,310       (2,225,605 )     1,715,705  
Backlog     303,400       (303,400 )     -  
Non-contractual customer relationships     3,268,568       (895,069 )     2,373,499  
    $ 9,645,578     $ (4,094,429 )   $ 5,551,149  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The following summarizes amortization of acquisition related intangible assets included in the statement of operations:

 

    Years Ended December 31,  
    2012     2011  
             
Cost of sales   $ 771,416     $ 784,749  
General and administrative     148,156       158,236  
    $ 919,572     $ 942,985  
Schedule of Expected Amortization Expense [Table Text Block]

The Company expects that amortization expense for the next five succeeding years will be as follows:

 

2013   $ 907,223  
2014   $ 416,656  
2015   $ 310,458  
2016   $ 310,458  
2017   $ 310,458