3. INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2012

Intangible Assets Disclosure [Text Block]

3.   INTANGIBLE ASSETS

Intangible Assets - Intangible assets are recorded at cost and consist of the Trunity Platform software development costs. Amortization is computed using the straight-line method over 3 years. We annually assess intangible and other long-lived assets for impairment. There was no impairment loss in 2011

Intangible assets were comprised of the following at March 31, 2012:

	Estimated	Gross		Accumulated			Net Book
Trunity platform	Life	Cost		Amortization			Value
Assets acquired from Trunity, LLC	3 years	$	1,775,000	$	(1,627,083	)	$	147,917
Internal costs capitalized for period from July 28, 2009 (inception) to December 31, 2009	3 years		121,820		(101,516	)	$	20,303
Internal costs capitalized for the twelve months ended December 31, 2010	3 years		342,345		(199,701	)	$	142,644
Internal costs capitalized for the twelve months ended December 31, 2011	3 years		327,100		(81,775	)	$	245,325
Internal costs capitalized for the three months ended March 31, 2012	3 years		122,257		(11,238	)	$	111,019
Carrying value as of March 31, 2012							$	667,208

The following table represents the future remaining amortization as of March 31, 2012:

2012	$	365,096
2013		206,843
2014		95,269
Total future amortization expense	$	667,208

The Company’s Trunity Platform technology was acquired from a related company, Trunity, LLC, and was valued at management’s best estimate of its value at that time of the transaction. Trunity, LLC was wholly owned by the three founders of the Company. Subsequent internal costs capitalized consist of direct labor, including taxes and benefits. Amortization of three years is based on management’s best estimate of useful life of current technology in this industry.