5. Completed Acquisition

9 Months Ended

Sep. 30, 2012

Business Combination Disclosure [Text Block]

5.  Completed Acquisition

On May 23, 2012 the Company completed its acquisition of substantially all of the commercial and operating assets of IPS Meteostar (“IPSM”). IPSM provides a global customer base with applications for aviation, hydrology, weather, transportation, power/energy, research, and the military.  IPSM's LEADS™ (Leading Environmental Analysis and Display System) software is a leading weather software, providing integrated professional weather capabilities.  The acquisition of IPSM was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration paid were recorded at their estimated fair values as of the acquisition date.

In connection with IPSM acquisition, the consideration paid was $4,241,914.  Fixed assets purchased totaled $309,545.  A deferred asset of $64,866 was recognized.  Accrued vacation assumed totaled $190,782.  The excess of consideration paid over the fair value of net assets and liabilities assumed was $4,058,285, which is classified as goodwill and will not be amortized however, it will be reviewed annually for impairment.  The fair values shown above are preliminary estimates and subject to adjustment.  Intangible assets will be reviewed and may be established.  Any material adjustments to the estimates will be reflected, retroactively, as of the date of the acquisition including valuation of any intangible assets that have not yet been reviewed.