Intangible Assets, net

12 Months Ended

Dec. 31, 2012

Intangible Assets, net

Intangible Assets, net

6. Intangible Assets, net

The components of intangible assets consist of the following at December 31, 2012 and 2011:

	December 31, 2012			December 31, 2011
Depreciable intangibles:
Non-compete agreements	$	60,000		$	60,000
Contract	1,031,992			131,992
Intellectual properties	320,680			320,680
Brand and Logo	54,229			54,229
Deferred charges	900,000			900,000
	$	2,366,901		$	2,366,901
Less accumulated amortization	(2,118,234		)	(1,986,328		)
	$	248,667		$	380,573

Amortization expense for intangibles was $131,906 for the year ended December 31, 2012, $1,086,328 for the Transition Period ended December 31, 2011 and $0 for the year ended June 30, 2011 (includes the depreciation expense of the Holding Company and FRES).  Amortization expenses for the next three years are expected to be approximately $80,000 per year.

In general, our non-compete agreements are included in certain employment agreements and are amortized over the life of the employment agreement which is 3 years. Customer contracts are amortized over the life of the contract. Intellectual property and brand and logos are amortized over a 5 year period. Deferred charges, such as those listed above, are amortized over the life of the agreement.