INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 11 – INTANGIBLE ASSETS 

As of December 31, 2013, the Company had recorded intangible assets totaling $874,600, which included $366,000 as a result of its acquisition of Rocky Mountain Hydroponics, LLC and Evergreen Garden Center, LLC (“RMH/EGC”) (see “NOTE 3 – PURCHASE – ROCKY MOUNTAIN HYDROPONICS and EVERGREEN GARDEN CENTER”). The Company had also recorded $414,300 of accumulated amortization as of December 31, 2013 in relation to its intangible assets, which resulted in a net book value of $460,300 as of December 31, 2013. 

During the three month period ended March 31, 2014, the Company recorded $26,637 of non-cash amortization expense related to its intangible assets. During the same period in fiscal year 2013, the Company recorded $27,249 of non-cash amortization expense related to its intangible assets. The Company will continue to amortize its currently recorded intangible assets at the rate of $8,879 per month, or $26,637 on a quarterly basis. 

The following is a summary of the Company’s intangible assets as of March 31, 2014:

Intangible Assets:	Recorded  Value		Accumulated Amortization			Net Book Value
RMH/EGC acquisition	$	366,000	$	(61,000	)	$	305,000
Greners acquisition		230,000		(104,937	)		125,063
Phototron acquisition		215,000		(215,000	)		-
Soja, Inc. (Urban Garden Supply) acquisition		60,000		(60,000	)		-
Trademarks		3,600		-			3,600
Total intangible assets – March 31, 2014	$	874,600	$	(440,937	)	$	433,663