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5. INTANGIBLE ASSETS AND ASSET ACQUISITION (Tables)
3 Months Ended
Mar. 31, 2014
Intangible Assets And Asset Acquisition Tables  
Preliminary purchase price

The purchase price allocation was obtained from an independent valuation firm. The following sets forth the components of the final purchase price allocation:

 

Purchase Price      
Cash payment   $ 3,500,000  
Warranty expense     10,000  
Total purchase price   $ 3,510,000  
         
Assets Purchased        
Inventory   $ 71,700  
Fixed assets     150,000  
Patents     2,848,300  
Trademarks     440,000  
Total Assets Acquired   $ 3,510,000  

 

Intangible assets

Definite life intangible assets consist of the following:

 

   

March 31,

2014

   

December 31,

2013

 
             
Intellectual property and patents and trademarks   $ 2,959,400     $ 2,959,400  
Less: Accumulated Amortization      465,213        372,836  
Intangible Assets, net   $ 2,494,187     $ 2,586,564  

 

 Indefinite life intangible assets consist of the following:

 

   

March 31,

2014

   

December 31,

2013

 
             
Trademarks   $ 440,000     $ 440,000  
Total Trademarks   $ 440,000     $ 440,000