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NOTE 5 Intangible Assets
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Intangible Assets

NOTE 5 — Intangible Assets

 

Intangible assets consist of a patent purchased in 2004 for $600,000 covering the design and functioning of plug-in bar code scanners, bar code imagers, and radio frequency identification products, which is being amortized on a straight line basis over its estimated life of ten years. Intangible assets of $570,750 remaining from a prior acquisition in 2000 consisting of developed software and technology with estimated lives at the time of acquisition of 8.5 years was fully amortized in the quarter ended June 30, 2009. 

Amortization of all intangible assets for the years ended December 31, 2011, 2010, and 2009, was $60,000, $60,000, and $76,787, respectively, and are included in research and development expense. Intangible assets as of December 31, 2011 consisted of the following:

 

  Gross
Assets		  Accumulated
Amortization		  Net
Patent $600,000  $450,000  $150,000
Project management tools  570,750   570,750   —
    Total intangible assets $1,170,750  $1,020,750  $150,000

 

Intangible assets as of December 31, 2010 consisted of the following:

 

  Gross
Assets		  Accumulated
Amortization		  Net
Patent $600,000  $390,000  $210,000
Project management tools  570,750   570,750   —
    Total intangible assets $1,170,750  $960,750  $210,000

  

Based on identified intangible assets recorded at December 31, 2011 and assuming no subsequent impairment of the underlying assets, the annual amortization expense is expected to be $60,000 annually for fiscal years 2012 and 2013 and $30,000 for fiscal year 2014.