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FIXED ASSETS

9 Months Ended

Sep. 30, 2012

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, 2011				September 30, 2012
Equipment		$	1,101,000			$	1,138,000
Computer software			3,234,000				3,303,000
Computer hardware			1,777,000				1,889,000
Furniture and fixtures			361,000				370,000
Automobiles			47,000				47,000
Leasehold improvements			295,000				181,000

			6,815,000				6,928,000
Accumulated depreciation and amortization			(3,723,000	)			(4,364,000	)

		$	3,092,000			$	2,564,000

Depreciation and amortization expense for the three- and nine-month periods ended September 30, 2011 was $292,000 and $917,000, respectively, and for the three- and nine-month periods ended September 30, 2012 was $244,000 and $767,000, respectively. This includes amortization of costs associated with computer software and website development for the three- and nine-month periods ended September 30, 2011 of $155,000 and $466,000, respectively, and for the three- and nine-month periods ended September 30, 2012 of $142,000 and $434,000, 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^TM 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 $121,000 and $69,000 for such projects for the nine-month periods ended September 30, 2011 and 2012, respectively.

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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