Intangible Assets, Goodwill and Other

3 Months Ended

Aug. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 3. Intangible Assets

Intangible assets, net are as follows:

	August 31, 2012	February 29, 2012
Domain names	$        857,420	$      835,809
Website development costs	353,329	351,457
Less accumulated amortization	(165,304)	(108,045)
	$     1,045,445	$   1,079,221

During the six months ended August 31, 2012, the Company capitalized $21,611 in additional domain name purchases.  Since the useful life of the domain names is deemed to be indefinite, no amortization has been recorded.

During the six months ended August 31, 2012, the Company incurred $11,185 of annual domain name renewal fees and recorded them as prepaid domain name renewal fees and expensed $93,687 on a straight line basis, to cost of revenues in the Company’s consolidated statement of operations for the six months ended August 31, 2012.  At August 31, 2012, the Company had $83,326 of prepaid domain name renewal fees which will be amortized over future periods.

During the six months ended August 31, 2012, the Company capitalized $1,872 of additional website development costs which the Company determined were not ready for their intended use and therefore no amortization expense has been recorded for these costs.  The Company has a total recorded cost of $353,329 at August 31, 2012 and it has determined that $351,457 of these costs pertain to components of the Company’s website development that are ready for their intended use and have an estimated useful life of three years.  During the three and six months ended August 31, 2012, the Company recorded $27,971 and $57,259, respectively,  to cost of revenues for amortization expense pertaining to these website components.