Intangible Assets

12 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Intangible Assets

(12)           Intangible Assets

The following table summarizes the activity of intangible assets for the years ended September 30, 2015 and 2014, respectively: 

2015	Weighted Average Useful Life (yrs)		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Patent & royalty agreements		7.99	$	21,170,565	$	(3,742,188	)	$	17,428,377
Developed technology		8.11		7,442,186		(1,291,876	)		6,150,310
Customer relationships		8.05		2,538,496		(387,385	)		2,151,111
Trade name		9.55		310,762		(190,064	)		120,698
Website		3.0		50,386		(16,795	)		33,591
Total				31,512,395		(5,628,308	)		25,884,087
2014	Weighted Average Useful Life (yrs)		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Patent & royalty agreements		7.99	$	21,170,565	$	(2,405,668	)	$	18,764,897
Developed technology		8.97		6,190,083		(318,054	)		5,872,029
Customer relationships		7.7		1,860,000		(81,447	)		1,778,553
Trade name		9.64		291,486		(13,725	)		277,761
Website		3.0		50,386		-			50,386
Total				29,562,520		(2,818,894	)		26,743,626

The intangible assets summarized above were purchased on various dates from January 2010 through December 31, 2014. The assets have useful lives ranging from three to ten years. Amortization expense for the years ended September 30, 2015 and 2014 was $2,688,537 and $1,563,416, respectively.

The following table summarizes the future maturities of amortization of intangible assets as of September 30, 2015:

Fiscal Year	Amortization		Patent		STOP Royalty
2016		2,720,017		5,556		450,000
2017		2,720,017		5,556		450,000
2018		2,703,221		5,556		450,000
2019		2,699,518		1,852		450,000
2020		2,500,351				450,000
Thereafter		12,540,965				1,537,500
Total		25,884,087		18,519		3,787,500

Goodwill – During the year ended September 30, 2015, the Company recognized goodwill as a result of acquisitions discussed in the Acquisitions footnote. In accordance with accounting principles generally accepted in the United States of America the Company does not amortize goodwill. These principles require the Company to periodically perform tests for goodwill impairment, at least annually, or sooner if evidence of possible impairment arises. The Company evaluated the goodwill for impairment as of September 30, 2015. Based on the evaluation made, the Company concluded that no impairment of goodwill was necessary.

Goodwill, as of September 30 consisted of the following:

	September 30,
	2015			2014
Balance - beginning of year	$	6,577,609		$	-
Additions resulting from acquisitions:
Acquisition of GPS Global Tracking & Surveillance, Ltd.		-			3,381,000
Acquisition of Emerge Monitoring, Inc.		-			3,381,754
Acquisition of Track Group Analytics Limited		1,653,815			-
Effect of foreign currency translation on goodwill		(448,521	)		(185,145	)
Balance - end of year	$	7,782,903		$	6,577,609