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Note 7 - Intangible Assets
 12 Months Ended
Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

NOTE 7 — 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 was $60,000 in each of the years ended December 31, 2012, 2011, and 2010, and are included in research and development expense. Intangible assets as of December 31, 2012 consisted of the following:

 

   Gross
Assets		  Accumulated
Amortization		  Net
Patent  $600,000   $510,000   $90,000 
Project management tools   570,750    570,750    —   
    Total intangible assets  $1,170,750  $1,080,750  $90,000

 

 

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

 

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