Intangible Assets

The Company has material intangible assets consisting of purchased intangibles and internally developed software used in the conduct of business. The following table summarizes purchased and internally developed intangible assets subject to amortization as follows:

	DECEMBER 31, 2013
								Weighted
								Average
	Gross Carrying		Accumulated			Net Book		Amortization
	Amount		Amortization			Value		Period

Customer Relationships	$	2,890,000	$	(1,405,000	)	$	1,485,000	6.0
Channel Relationships		540,000		(216,000	)		324,000	4.0
Telecommunications Software		2,450,000		(1,089,667	)		1,360,333	4.0
Cybersecurity Software		669,171		(530,486	)		138,685	2.0
Trade Name and Trademarks		225,000		(179,750	)		45,250	1.0
Non-Compete Agreements		780,000		(519,997	)		260,003	2.0

	$	7,554,171	$	(3,940,900	)	$	3,613,271

For the year ended December 31, 2013 there were no acquisitions or disposals of intangible assets. For the year ended December 31, 2013, the Company did not complete any business combinations or purchase intangible assets from a third party.

	DECEMBER 31, 2012
								Weighted
								Average
	Gross Carrying		Accumulated			Net Book		Amortization
	Amount		Amortization			Value		Period

Customer Relationships	$	2,890,000	$	(1,005,835	)	$	1,884,165	7.0
Channel Relationships		540,000		(108,000	)		432,000	5.0
Telecommunications Software		2,450,000		(700,000	)		1,750,000	5.0
Cybersecurity Software		669,171		(348,344	)		320,827	3.0
Trade Name and Trademarks		225,000		(22,750	)		202,250	2.0
Non-Compete Agreements		780,000		(400,001	)		379,999	3.0

	$	7,554,171	$	(2,584,930	)	$	4,969,241

During the year ended December 31, 2012, the Company completed its determination of the fair value of intangibles acquired in connection with a business combination, increased the value of identified intangible assets from $4,492,428 to $5,320,000 as of December 31, 2012 and increased the useful lives of acquired intangibles from provisional estimates. See Note 3 for additional information about the fair value adjustments recorded to intangible assets in connection with this business combination.

For the year ended December 31, 2012, the Company recorded capitalized software costs related to our Cybersecurity software totaling approximately $132,000. For the year ended December 31, 2012 there were disposals of fully amortized customer relationships, telecommunications software and cybersecurity software intangibles with gross historical cost and accumulated amortization of approximately $1.1 million, $0.5 million and $1.2 million, respectively. The total weighted average life of purchased and internally developed intangible assets is approximately 6.0 years and 2.0 years, respectively, at December 31, 2013.

The following table summarizes reflects estimated future amortization for purchased intangible assets for fiscal years ending December 31:

2014	$	1,120,385
2015		737,552
2016		691,167
2017		569,167
2018		247,500
Thereafter		247,500

Total	$	3,613,271

The aggregate amortization expense recorded was approximately $1,356,000 and $1,392,400 for the years ended December 31, 2013 and 2012, respectively.