Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

4.	Goodwill and Intangible Assets

Goodwill is to be reviewed at least annually for impairment. The Company has elected to perform this review annually on December 31st of each calendar year. We did not identify any impairment as of December 31, 2010. There were no fundamental changes in business related goodwill for the three and nine month periods ended September 30, 2011, which would indicate reconsideration is necessary.

Purchased and Internally Developed Intangible Assets

The following table summarizes purchased and internally developed intangible assets subject to amortization as of September 30, 2011:

	Gross Carrying Amount		Accumulated Amortization			Remaining Weighted Average Amortization Period (in years)
Purchased Intangible Assets

iSYS (includes customer relationships, internal use software and trade name)	$	1,230,000	$	(843,751	)		2

Protexx (Identity Security Software)	$	506,463	$	(506,463	)		0

Advanced Response Concepts Corporation (includes preliminary values for customer relationships and first responder security software)	$	355,000	$	(118,333	)		3
	$	2,091,463	$	(1,468,547	)		2
Internally Developed Intangible Assets

ORC PKI-V Intangible (Related to internally generated software)	$	147,298		(77,740	)		2

ORC PKI-VI Intangible (Related to internally generated software)	$	77,994		(17,332	)		3

ORC PKI-VII Intangible (Related to internally generated software)	$	311,438		(25,953	)		3
		536,730	$	(121,025	)		3

Total	$	2,628,193	$	(1,589,572	)		3

Intangible asset amortization expense recorded for the nine months ended September 30, 2011 and 2010 was $416,899 and $601,597, respectively. Intangible asset amortization expense recorded for the three months ended September 30, 2011 and 2010 was $123,461 and $178,202, respectively. The total weighted average life of all of the intangibles is approximately 4 years.

Estimated remaining future amortization of intangible assets for each of the five fiscal years ending December 31 is as follows:

2011	$	98,562
2012		437,577
2013		360,659
2014		135,906
2015		5,917

Total	$	1,038,621

There were no amounts of research and development assets acquired or any written-off during the three and nine month period ended September 30, 2011 and 2010.

- 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.

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