Intangible Assets

6 Months Ended

Jun. 30, 2013

Note 6. Intangible Assets

Intangible assets include customer contracts, telecommunication licenses and integrated, multi-country, centrally managed switch-based interconnects as well as ValidSoft Intellectual Property, including but not limited to software source codes, applications, customer list & pipeline, registration & licenses, patents and trademark/brands.

Intangible assets as of June 30, 2013 and December 31, 2012 consisted of the following:

	Estimated	June 30,			December 31,
	Useful Lives	2013			2012
Customer Contracts, Licenses , Interconnect & Technology	5-10	$	12,917,453		$	12,096,592
ValidSoft IP & Technology	1-10		15,352,291			15,597,814
Total intangible assets			28,269,744			27,694,406

Less: Accumulated Amortization and impairment charges			(10,760,951	)		(10,569,693	)
Less: Accumulated Amortization ValidSoft IP & Technology			(7,542,230	)		(6,621,687	)
Total intangible assets, Net		$	9,966,563		$	10,503,026

Total amortization expense for the three months ended June 30, 2013 and 2012 was $850,420 and $657,857, respectively. Total amortization expense for the six months ended in June 30, 2013 and 2012 was $1,562,444 and $1,357,804 respectively.

Estimated future amortization expense related to our intangible assets is:

	Rest of 2013		2014		2015		2016		2017		2018 and thereafter
Interconnect licenses and contracts	$	348,574	$	467,433	$	145,634	$	17,526	$	-	$	-
ValidSoft IP & Technology		1,057,452		2,114,904		1,973,718		1,926,655		501,259		234,999
	$	1,406,026	$	2,582,337	$	2,119,352	$	1,944,181	$	501,259	$	234,999