Intangible Assets, Goodwill and Other

3 Months Ended

Nov. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 3. Intangible Assets

Intangible assets, net are as follows:

	November 30,            2012	February 29,     2012
Domain names	$        858,628	$      835,809
Website development costs	360,481	351,457
Less accumulated amortization	(192,647)	(108,045)
	$     1,026,462	$   1,079,221

During the nine months ended November 30, 2012, the Company capitalized $23,520 in additional domain name purchases and sold a single domain name with a book value of $700 which decreased the capitalized cost of domain name purchases.  Since the useful life of the domain names is deemed to be indefinite, no amortization has been recorded.

During the nine months ended November 30, 2012, the Company incurred $59,576 of annual domain name renewal fees and recorded them as prepaid domain name renewal fees and expensed $140,735 on a straight line basis, to cost of revenues in the Company’s consolidated statement of operations for the nine months ended November 30, 2012.  At November 30, 2012, the Company had $84,670 of prepaid domain name renewal fees which will be amortized over future periods.

During the nine months ended November 30, 2012, the Company capitalized $9,023 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 $360,481 at November 30, 2012 and it has determined that $351,458 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 nine months ended November 30, 2012, the Company recorded $27,342 and $84,602, respectively,  to cost of revenues for amortization expense pertaining to these website components.