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INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 9. INTANGIBLE ASSETS Merchant Portfolios The following table reflects the Company’s merchant portfolio at their cost and net carrying value as of December 31, 2013:
|  |  |  |  | Remaining |  |  |  |  |  |  |
|  | Fair |  | Useful Life in |  | Accumulated |  |  |  |
|  | Market Value |  | Months |  | Amortization |  | Net |
TOT BPS, LLC |  | $ | 1,852,851 |  | 15 |  | $ | 852,247 |  | $ | 1,000,604 |
TOT HPS, LLC |  |  | 102,050 |  | 15 |  |  | 46,939 |  |  | 55,111 |
TOT FBS, LLC |  |  | 968,010 |  | 22 |  |  | 325,304 |  |  | 642,706 |
|  | $ | 2,922,911 |  |  |  | $ | 1,224,490 |  | $ | 1,698,421 |
The useful lives of merchant portfolios represent management’s best estimate over which the Company will recognize the economic benefits of these intangible assets. Subsequent to the balance sheet date the Company was informed that its lawsuit with First Data Corp. was dismissed. The company subsequently filed an appeal, however, since the likelihood of successfully pursuing the recoupment of the portfolios appears to be remote; the Company has impaired the net asset value of the portfolio belonging to Process Pink, LLC as of December 31, 2013. As a result, the Company has written off the portfolio value (net of accumulated amortization) in the amount of $872,354. The Company has recognized this charge as a loss from impairment of portfolios in the accompanying statement of operations and comprehensive loss. The Company capitalizes certain costs for website development projects. Specifically, the Company capitalizes projects that are significant in terms of functional value added to the site. A capitalized project would be closer to a full product launch than an incremental or point release update. Costs for updates are expensed as incurred. Capitalized costs are amortized over 24 months on a straight-line basis. The Company also capitalizes projects from the point of start to the point the application, service or website is publicly launched. Amortization is straight-line over 24 months. Impairment is reviewed quarterly to ensure only viable active project costs are capitalized. Capitalized website development costs are included in other assets for the year ended December 31, 2012. There were no capitalized website development costs at December 31, 2013 as website assets were divested during the quarter ended September 30, 2013. During the year ended December 31, 2013, two key executives signed covenants not to compete. These covenants have a three-year life and have an estimated fair market value of $641,667 as of December 31, 2013. At December 31, 2013, the Company had $2,964,424 of intangible assets of which $2,322,757 are attributed to TOT Group. As of December 31, 2012, the Company’s intangible assets prior to the acquisition of Unified Payments amounted to $111,670. Shown below are the details of intangible assets as of December 31, 2013 and 2012:
|  | Domain Name |  | IP Sofware |  | Portfolios |  | Client Acquisition Costs |  | Covenant Not to Compete |  | Capitalized Patent Cost |  | Website Capitalization Cost |  | Other |  | Total |
Balance at January 1, 2012 |  | $ | 6,787 |  | $ | - |  |  |  |  |  |  |  |  |  |  | $ | 34,801 |  | $ | 75,875 |  | $ | 2,500 |  | $ | 119,963 |
Additions |  |  | 66,964 |  |  | - |  |  | - |  |  | - |  |  |  |  |  | 7,150 |  |  | 53,769 |  |  | - |  |  | 127,883 |
Amortization |  |  | - |  |  | - |  |  | - |  |  | - |  |  |  |  |  | (4,032) |  |  | (129,644) |  |  | (2,500) |  |  | (136,176) |
Balance at December 31, 2012 |  | $ | 73,751 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | 37,919 |  | $ | - |  | $ | - |  | $ | 111,670 |
Additions |  |  | - |  |  | 258,748 |  |  | 4,370,000 |  |  | 466,280 |  |  | 840,000 |  |  | - |  |  | - |  |  | - |  |  | 5,935,028 |
Amortization |  |  | - |  |  | (14,923) |  |  | (1,799,225) |  |  | (85,769) |  |  | (198,333) |  |  | (2,017) |  |  | - |  |  | - |  |  | (2,100,267) |
Impairment |  |  | - |  |  | - |  |  | (872,354) |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (872,354) |
Divested |  |  | (73,751) |  |  | - |  |  | - |  |  | - |  |  | - |  |  | (35,902) |  |  | - |  |  | - |  |  | (109,653) |
Balance at December 31, 2013 |  | $ | - |  | $ | 243,825 |  | $ | 1,698,421 |  | $ | 380,511 |  | $ | 641,667 |  | $ | - |  | $ | - |  | $ | - |  | $ | 2,964,424 |
Amortization expense for the year ended December 31, 2013 was $2,100,267, and $136,176 for the year ended December 31, 2012. The following table presents the estimated aggregate amortization expense of other intangible assets for the next five years ending December 31, 2014 - 2017.
2014 |  | $ | 1,985,630 |
2015 |  |  | 643,332 |
2016 |  |  | 166,247 |
2017 |  |  | 56,405 |
Thereafter |  |  | 112,810 |
Total |  | $ | 2,964,424 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 + Details
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