INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets consist of the following at June 30, 2013 and December 31, 2012:

		6/30/13			12/31/12
Amortizing intangible assets:
Loyalty partner relationships	8 years	$	13,800,000		$	-
Merchant relationships	5 years		4,570,000			-
Technology	3 years		1,666,399			1,666,399
Non-compete agreements	2 years		1,531,801			1,241,801
Internally developed software	4 years		550,000			-
Customer database	4 years		220,000			-
			19,338,200			2,908,200
Accumulated amortization			(836,364	)		(155,226	)
			18,501,836			2,752,947
SkyMall tradename			7,170,000			-
Goodwill			141,568,726			-
		$	170,240,562		$	2,752,974

On September 24, 2012, the Company acquired certain intellectual property it intends to incorporate into its social network product.  The agreements contained various covenants by the sellers, including with respect to certain sellers, non-compete agreements.  As consideration for the intellectual property and non-compete agreements, the Company issued 727,050 of its common shares to the sellers with a deemed value of $2,908,200. Amortization of the technology asset will commence once the social network is ready for its intended use.

Amortization expense was $563,031 and $718,257 for the three and six month periods ended June 30, 2013, respectively.  No amortization expense was recorded for the three and six month periods ended June 30, 2012.

Future expected amortization expense for each of the five succeeding calendar years and thereafter is:

Year	Amount
2013	$	1,948,192
2014		4,018,892
2015		3,463,841
2016		3,249,350
2017		2,758,271
Thereafter		6,413,289
	$	21,851,835