3. INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 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 and 2012.

Intangible assets were comprised of the following at June 30, 2012:

	Estimated				Accumulated			Net Book
Trunity platform	Life		Gross Cost		Amortization			Value
Assets acquired from Trunity, LLC		3 years	$	1,775,000	$	(1,775,000	)	$	—
Internal costs capitalized for period from July 28, 2009 (inception) to December 31, 2009		3 years		121,820		(111,668	)	$	10,152
Internal costs capitalized for the twelve months ended December 31, 2010		3 years		342,345		(228,230	)	$	114,115
Internal costs capitalized for the twelve months ended December 31, 2011		3 years		327,100		(109,033	)	$	218,067
Internal costs capitalized for the three months ended March 31, 2012		3 years		122,257		(20,376	)	$	101,881
Internal costs capitalized for the three months ended June 30, 2012		3 years		177,374		(14,782	)	$	162,592
Carrying value as of June 30, 2012								$	606,807

The following table represents the future remaining amortization as of June 30, 2012:

2012		171,664
2013		265,968
2014		154,394
2015		14,781
Total future amortization expense	$	606,807

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.