INTANGIBLE ASSETS

3 Months Ended

May 31, 2014

Notes to Financial Statements

INTANGIBLE ASSETS

Intangible assets relate to patent filing and patent protection litigation costs as well as customer relationships, trade names and technology obtained in past acquisitions. With the exception of the Hipcricket trade name carried at $8.7 million, the intangible assets have finite lives and, as such, are subject to amortization.  

The following table presents the gross carrying value of the components of intangible assets and accumulated amortization:

			As of May 31, 2014
	Weighted Average Amortization Period (In months)		Gross Carrying Amount, net of impairment write downs		Accumulated Amortization		Net Carrying Value
Indefinite Lived Intangible:
Trade name	Indefinite		$	8,700,000	$	-	$	8,700,000
Definite Lived Intangible:
Patent litigation		84		4,367,399		2,208,105		2,159,294
Patents		120		717,846		142,836		575,010
Acquired technology		60		7,270,000		4,283,250		2,986,750
Customer relationships		60-72		12,850,000		7,316,875		5,533,125
Software		36		2,095,705		2,095,705		-
Non-compete agreements		36		212,000		212,000		-
Trade names		24		44,000		44,000		-
Total intangibles			$	36,256,950	$	16,302,771	$	19,954,179

			As of February 28, 2014
	Weighted Average Amortization Period (In months)		Gross Carrying Amount, net of impairment write downs		Accumulated Amortization		Transferred from Held for Sale		Impairment Loss		Net Carrying Value
Indefinite Lived Intangible:
Trade name	Indefinite		$	8,700,000	$	-	$	-	$	-	$	8,700,000
Definite Lived Intangible:
Patent litigation		84		4,451,946		1,971,568		-		87,975		2,392,403
Patents		120		623,600		125,125		3,123,016		3,028,771		592,720
Acquired technology		60		7,270,000		3,919,750		-		-		3,350,250
Customer relationships		60-72		12,850,000		6,682,292		-		-		6,167,708
Software		36		2,095,705		2,095,705		-		-		-
Non-compete agreements		36		212,000		212,000		-		-		-
Trade names		24		44,000		44,000		-		-		-
Total intangibles			$	36,247,251	$	15,050,440	$	3,123,016	$	3,116,746	$	21,203,081

Amortization of intangible assets was $1.3 million and $1.2 million for the three months ended May 31, 2014 and 2013, respectively.

Amortization in future fiscal periods is expected to be as follows:

Remainder of Fiscal Year 2015	$	3,673,469
2016		4,637,948
2017		2,562,571
2018		70,843
2019		70,843
Thereafter		238,505
Total	$	11,254,179