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Intangible Assets
12 Months Ended
Sep. 30, 2014
Intangible Assets [Abstract]  
Intangible Assets

7. Intangible Assets

 

Patents

 

The following is a summary of capitalized patent costs:

 

   September 30, 
   2014  2013 
 Patent costs $1,135,964  $939,535 
 Amortization  (688,537)  (471,698)
   $447,427  $467,837 

 

Amortization charged to operations for the year ended September 30, 2014 and 2013 was $216,839 and $134,219, respectively.

 

A schedule of amortization expense over the estimated remaining lives of the patents is as follows:

 

 Year Ending September 30,   
 2015 $162,281 
 2016  158,847 
 2017  80,861 
 2018  16,254 
 2019  10,401 
 Thereafter  18,783 
   $447,427 

 

In July 2014, the Company was issued US Patent 8,787,877 "Systems of Providing Information to a Telephony Subscriber" and US Patent 8,787,878 "Systems of Providing Information to a Telephony Subscriber". The costs associated with these patents, totaling $71,721, are being amortized over the patent's estimated useful life of seven years.

 

Software license

 

On March 30, 2012, the Company acquired an exclusive perpetual license to utilize the “Anywhere” software and related source code from Soap Box Mobile, Inc. (“Soapbox”), a company in which the Company’s former Executive Chairman owned a majority preferred interest of the license grant.  The Company paid $785,000 in cash and 200,000 shares of Company common stock for the exclusive perpetual license, of which the former Executive Chairman received $755,000 under terms of a November 27, 2012 agreement.  The Company has valued the license at $831,000, which consists of the $785,000 in cash consideration and the $46,000 fair value assigned to the 200,000 shares of Company common stock.  The perpetual license is a long-term asset that is not subject to amortization.

 

Goodwill

 

The accounting for the acquisition of DoubleVision Networks Inc. in July 2014 resulted in recognizing goodwill of $3,482,884. The Company does not amortize goodwill, but reduces the carrying amount of goodwill if management determines that its implied fair value has been impaired.