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Intangible Assets And Goodwill
9 Months Ended12 Months Ended
Sep. 30, 2011
Dec. 31, 2010
Intangible Assets And Goodwill [Abstract]  
Intangible Assets And Goodwill

Note 3 – Goodwill and Intangible Assets

The following is a schedule of our intangible assets from continuing operations as of September 30, 2011:

 

Description    Term      Carrying
Value
     Accumulated
Amortization
    Net
Carrying

Value
 

Names database (1)

     1-2 Years       $ 15,706,427       $ (13,460,095   $ 2,246,332   

Customer lists

Exclusivity agreement

    

 

5 Years

1 Year

  

 

    

 

3,500,000

150,000

  

 

    

 

(3,500,000

(150,000


   

 

—  

—  

  

 

Tradenames (2)

     —           390,000         —          390,000   
     

 

 

    

 

 

   

 

 

 

Total intangible assets

      $ 19,746,427       $ (17,110,095   $ 2,636,332   
     

 

 

    

 

 

   

 

 

 

Goodwill

      $ 3,351,405       $ —        $ 3,351,405   
     

 

 

    

 

 

   

 

 

 

 

(1) Amortization of our Names Database for the three months ended September 30, 2011 and 2010 was approximately $661,000 and $489,000, respectively. Additionally, amortization of our Names Database for the nine months ended September 30, 2011 and 2010 was approximately $1,860,000 and $1,486,000, respectively.
(2) We do not amortize the carrying value of our Tradenames.

Our amortization expense over the next five years as of September 30, 2011 is as follows:

 

2011

   $ 634,041   

2012

     1,370,887   

2013

     241,404   

2014

     —     

2015

     —     
  

 

 

 

Total

   $ 2,246,332   
  

 

 

Note 5 – Intangible Assets and Goodwill

During 2009, the Company tested all reporting units for impairment. During the first quarter of 2010, the Company was notified by its merchant processors that the merchant processors would be unable to continue to process transactions from the negative option marketing business, which was included in the direct segment. As a result of this change to the business, the Company deemed all intangible assets and goodwill associated with the iLead Media, Inc. acquisition as of December 31, 2009 to be impaired. The Company has included approximately $800,000 in impairment of assets in the accompanying consolidated statement of operations for the year ended December 31, 2009 associated with this impairment.

During 2010, the Company tested all reporting units for impairment. Based on the results of these tests, there were no indications of impairment. However in 2010, the tradenames associated with Morex and Primary Ads were impaired because the Company is no longer using these names and consequently, the Company recorded an impairment loss of $400,000.

The following is a schedule of the Company's intangible assets from its continuing operations as of December 31, 2010:

 

     Term    Carrying
Value
     Accumulated
Amortization
and
Impairment
    Net
Carrying
Value
 

Names database (1)

   1-2 Years    $ 13,563,058       $ (11,600,097   $ 1,962,961   

Website development

   5 Years      4,210,000         (4,110,729     99,271   

Customer lists

   5 Years      3,500,000         (3,477,814     22,186   

Exclusivity agreement

   1 Year      150,000         (112,500     37,500   

Tradenames

   Indefinite      390,000         —          390,000   
     

 

 

    

 

 

   

 

 

 

Total intangible assets

      $ 21,813,058       $ (19,301,140   $ 2,511,918   

Goodwill

      $ 3,893,405       $ (542,000   $ 3,351,405   
     

 

 

    

 

 

   

 

 

 

 

The following is a schedule of the Company's intangible assets from its continuing operations as of December 31, 2009:

 

     Term    Carrying
Value
     Accumulated
Amortization
and
Impairment
    Net
Carrying
Value
 

Names database (1)

   1-2 Years    $ 11,803,351       $ (10,143,103   $ 1,660,248   

Website development

   5 Years      4,210,000         (3,268,727     941,273   

Customer lists

   5 Years      3,895,000         (3,572,814     322,186   

Vendor relations

   3 Years      2,682,000         (2,682,000     —     

Software

   5 Years      1,195,000         (1,195,000     —     

Reference Materials

   4 Years      571,000         (571,000     —     

Tradenames

   Indefinite      882,000         —          882,000   
     

 

 

    

 

 

   

 

 

 

Total intangible assets

      $ 25,238,351       $ (21,432,644   $ 3,805,707   

Goodwill

      $ 3,893,405       $ (542,000   $ 3,351,405   
     

 

 

    

 

 

   

 

 

 

 

(1) Amortization of Names Database included in cost of revenue for the years ended December 31, 2010 and 2009 was approximately $2.0 million and $1.8 million, respectively. The Company does not amortize the carrying value of its Tradenames.

The Company's amortization expense over the next five years is as follows:

 

2011

   $ 1,715,919   

2012

     405,999   

2013

     —     

2014

     —     

2015

     —     
  

 

 

 

Total

   $ 2,121,918