Intangible Assets

12 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Intangible Assets

Note 4 – Intangible Assets

The Company incurred legal costs in acquiring patent and trademark rights. These costs are projected to generate future positive cash flows in the near term and have been capitalized to intangible assets in the period incurred. Once each patent or trademark is issued, capitalized costs are amortized on a straight-line basis over a period not to exceed 20 years and 10 years, respectively.

Intangible assets consist of the following:

	September 30,			September 30,
	2012			2011
Patents	$	46,862		$	49,586
Trademarks		4,995			6,243
Licensing rights		4,214			4,214
		56,071			60,043
Accumulated Amortization		(7,334	)		(6,076	)
Intangibles, net	$	48,737		$	53,967

The Company recorded amortization expense related to the intangible assets of $1,258 and $1,554 for the years ended September 30, 2012 and 2011, respectively.

The following table summarizes the amortization for the above intangible assets over the next 3 years and thereafter:

Years ended September 30,	Amount
2013	$	2,092
2014		2,092
2015		2,092
	$	6,276