Note 10 - Goodwill

The changes in the carrying amount of goodwill and accumulated impairment losses for the years ended December 31, 2011 and 2010, respectively, are as follows:

	IntelliSys, Inc.		K9 Bytes, Inc.		Total

Balance, December 31, 2009:
Goodwill	$	-	$	-	$	-
Accumulated impairment losses		-		-		-
		-		-		-

Goodwill acquired during the year		53,588		-		53,588
Impairment losses		-		-		-
Balance, December 31, 2010:
Goodwill		53,588		-		53,588
Accumulated impairment losses		-		-		-
		53,588		-		53,588

Goodwill acquired during the year		-		87,244		87,244
Impairment losses		-		-		-
Balance, December 31, 2011:
Goodwill		53,588		87,244		140,832
Accumulated impairment losses		-		-		-
	$	53,588	$	87,244	$	140,832

Our subsidiaries operate as a single operating segment. The fair value of the goodwill is tested for impairment in the fourth quarter, after the annual forecasting process. Our annual forecasting did not result in impairment losses during the fourth quarter of 2011. We will perform our next earnings forecast during the fourth quarter of 2012, unless events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The fair value of our goodwill was estimated using the expected present value of future cash flows.