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PATENTS AND TRADEMARK
9 Months Ended
Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
PATENTS AND TRADEMARK

NOTE 3 – PATENTS AND TRADEMARK

 

The Company has five issued patents and filed for three additional provisional patents for anti-counterfeiting technology. Accordingly, costs associated with the registration of these patents and legal defense have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents (17 to 20 years). During the three and nine months ended September 30, 2013, the Company capitalized patent costs of $0 and $21,594 and $0 and $2,406 for the three and nine months ended September 30, 2012. Amortization expense for patents was $3,277 and $9,814 for the three and nine months ended September 30, 2013 and $2,768 and $8,328 for the three and nine months ended September 30, 2012 and included in general and administrative expense. Future estimated annual amortization over the next five years is approximately $13,100 per year for the years ended December 31, 2013 through 2017. In December 2012, the Company had purchased trademarks, a domain name and software from a third party and in the second quarter of 2013, reallocated the purchase price of $200,000 from intangibles to capital equipment based on the determined fair value of the assets acquired.