Note 7 - Intangibles

12 Months Ended

Sep. 29, 2012

Intangible Assets Disclosure [Text Block]

7.  INTANGIBLES

	2012			2011
Patents and trademarks	$	2,023,060		$	1,945,532
Trade names		458,493			-
Non-compete agreements		200,913			-
Customer relationships		3,370,184			-
		6,052,650			1,945,532
Less accumulated amortization		(2,061,763	)		(1,635,243	)
Net intangibles	$	3,990,887		$	310,289

On December 9, 2011, we acquired, through a new wholly-owned subsidiary, substantially all of the assets of MCHP and acquired intangibles of approximately $3,980,000.  At September 29, 2012 we had intangibles associated with the asset acquisition of MCHP of trade names, non-compete agreements and customer relationships (net of accumulated amortization of $352,628) of $3,676,962.

In addition, we had patents and trademarks (net of accumulated amortization) of $313,925 as of September 29, 2012 and $310,289 as of October 1, 2011.  The useful lives of individual patents and trademarks have been reviewed, and no material changes were required.  The intangibles and the patents and trademarks are primarily associated with the medical segment.

Amortization expense for intangibles, patents and trademarks during fiscal years 2012, 2011, and 2010 was $422,670, $64,218, and $60,132, respectively.  Estimated amortization expense for the next five fiscal years based on existing intangibles is as follows:

Fiscal years	Estimated Amortization Expense
2013	$	480,000
2014		394,000
2015		379,000
2016		354,000
2017		342,000