NOTE 7 - OTHER INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 7 - OTHER INTANGIBLE ASSETS

FONAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 and 2012

NOTE 7 - OTHER INTANGIBLE ASSETS

Other intangible assets, net of accumulated amortization, at June 30, 2013 and 2012 are comprised of:

	As of June 30,
	2013		2012
Capitalized software developmentcosts	$	7,668,959	$	6,368,960
Patents and copyrights		4,193,800		4,100,511
Management agreement		—		513,333
Non-competition agreements		4,100,000		—
Customer relationships		3,800,000		—
		19,762,759		10,982,804
Less: Accumulated amortization		7,858,511		7,147,625
	$	11,904,248	$	3,835,179

Information related to the above intangible assets for the years ended June 30, 2013 and 2012 is as follows:

	2013			2012
Balance – Beginning of Year	$	3,835,179		$	4,318,311
Amounts capitalized		9,359,907			146,163
Abandon patents written off		(66,619	)		(76,231	)
Impairment of management agreement		(357,500	)		—
Amortization		(866,719	)		(553,064	)
Balance – End of Year	$	11,904,248		$	3,835,179

Amortization of patents and copyrights for the years ended June 30, 2013 and 2012 amounted to $168,631 and $156,310, respectively.

Amortization of capitalized software development costs for the years ended June 30, 2013 and 2012 was $335,350 and $360,087, respectively.

Amortization of management agreement for the years ended June 30, 2013 and 2012 amounted to $100,833 and $36,667, respectively.

Amortization of non-competition agreements for the years ended June 30, 2013 and 2012 amounted to $195,238 and $0, respectively.

Amortization of customer relationships for the years ended June 30, 2013 and 2012 amounted to $66,667 and $0, respectively.

The estimated amortization of other intangible assets for the five years ending June 30, 2018 and thereafter is as follows:

For the Years Ending June 30,		Total		Patents and Copyrights		Capitalized Software Development Costs		Non-competition		Customer Relationships
	2014	$	1,406,735	$	185,745	$	445,276	$	585,714	$	190,000
	2015		1,378,035		201,879		400,442		585,714		190,000
	2016		1,397,159		217,434		404,011		585,714		190,000
	2017		1,418,301		232,987		409,600		585,714		190,000
	2018		1,370,948		234,900		360,334		585,714		190,000
	Thereafter		4,933,070		1,070,433		103,112		976,192		2,783,333
		$	11,904,248	$	2,143,378	$	2,122,775	$	3,904,762	$	3,733,333

The weighted average amortization period for other intangible assets is 11.2 years and they have no expected residual value.