FIXED ASSETS

9 Months Ended

Sep. 30, 2011

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 10 — FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation and amortization, and are summarized as follows:

	December 31, 2010			September 30, 2011
Equipment	$	1,026,000		$	1,092,000
Computer software		2,982,000			3,103,000
Computer hardware		1,751,000			1,774,000
Furniture and fixtures		329,000			330,000
Automobiles		47,000			47,000
Leasehold improvements		246,000			246,000

		6,381,000			6,592,000
Accumulated depreciation and amortization		(2,528,000	)		(3,445,000	)

	$	3,853,000		$	3,147,000

Depreciation and amortization expense for the three- and nine-month periods ended September 30, 2010 was $308,000 and $938,000, respectively, and for the three- and nine-month periods ended September 30, 2011 was $292,000 and $917,000, respectively. This includes amortization of costs associated with computer software and website development for the three- and nine-month periods ended September 30, 2010 of $147,000 and $429,000, respectively, and for the three- and nine-month periods ended September 30, 2011 of $155,000 and $466,000, respectively.

The Company capitalizes in fixed assets the costs of software development and website development. Specifically, the assets comprise an implementation of Oracle Enterprise Resource Planning (ERP) software, enhancements to the Veriwise® systems, and a customer interface website (which is the primary tool used to provide data to our customers). The website employs updated web architecture and improved functionality and features, including, but not limited to, customization at the customer level, enhanced security features, custom virtual electronic geofencing of landmarks, global positioning system (“GPS”)-based remote mileage reporting, and richer mapping capabilities. The Company capitalized the costs incurred during the “development” and “enhancement” stages of the software and website development. Costs incurred during the “planning” and “post-implementation/operation” stages of development were expensed. The Company capitalized $842,000 and $121,000 for website enhancements for the nine months ended September 30, 2010 and 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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