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Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

Note 4 — Goodwill and Intangible Assets

 

As of September 30, 2012 and December 31, 2011, goodwill amounted to $8,529,863 and $3,119,246, respectively.  The increase was due to the acquisition of Dansensor and adjustments due to foreign currency translation.  See Note 13 for discussion of the valuation techniques used to assess the fair value of the intangible assets at the acquisition date.  The Company tests goodwill for impairment annually at the reporting unit level using a fair value approach, in accordance with the provisions of ASC 350, Goodwill and Other. The Company will perform its annual impairment test for goodwill in the fourth quarter.

 

Other intangible assets (all of which are being amortized except projects in process) are as follows:

 

 

 

As of September 30, 2012

 

 

 

Cost

 

Accumulated
Amortization

 

Net

 

Estimated
Useful Lives

 

Patents

 

$

1,411,200

 

$

(417,549

)

$

993,651

 

10 to 17 years

 

Trademarks and trade names

 

4,192,941

 

(553,132

)

3,639,809

 

5 to 20 years

 

Developed technology

 

7,407,568

 

(585,316

)

6,822,252

 

9 years

 

Customer relationships

 

844,760

 

(46,931

)

797,829

 

9 years

 

Other intangibles

 

125,114

 

(85,640

)

39,474

 

3.75 years

 

 

 

$

13,981,583

 

$

(1,688,568

)

$

12,293,015

 

 

 

 

 

 

As of December 31, 2011

 

 

 

Cost

 

Accumulated
Amortization

 

Net

 

Estimated
Useful Lives

 

Patents

 

$

1,283,761

 

$

(447,158

)

$

836,603

 

10 to 17 years

 

Trademarks and trade names

 

516,069

 

(443,136

)

72,933

 

5 to 17 years

 

Other intangibles

 

80,000

 

(80,000

)

 

 

 

 

$

1,879,830

 

$

(970,294

)

$

909,536

 

 

 

 

Total amortization expense for the three-month periods ended September 30, 2012 and 2011 was $291,375 and $21,388, respectively, and $604,025 and $63,086, for the nine-month periods ended September 30, 2012 and 2011, respectively.  Projects in process are not amortized until the patent or trademark is granted by the regulatory agency or the asset is ready for use.  Estimated amortization expense for the remainder of 2012 and each of the four succeeding fiscal years and thereafter based on the intangible assets as of September 30, 2012 is as follows:

 

 

 

Estimated
Expense

 

2012

 

$

344,474

 

2013

 

$

1,155,679

 

2014

 

$

1,145,255

 

2015

 

$

1,140,602

 

2016

 

$

1,124,004

 

2017 and thereafter

 

$

6,835,535