Note 3 - Intangible Assets

3 Months Ended

Mar. 31, 2013

Notes

Note 3 - Intangible Assets

NOTE 3 - 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 as of March 31, 2013 and for the prior year period ending December 31, 2012.

Intangible assets were comprised of the following at March 31, 2013:

Trunity platform		Estimated Life	Gross Cost	Accumulated Amortization	Net Book 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	(121,820)	$         -
Internal costs capitalized for the twelve months ended December 31, 2010		3 years	342,345	(313,816)	$      28,529
Internal costs capitalized for the twelve months ended December 31, 2011		3 years	327,100	(190,808)	$     136,292
Internal costs capitalized for the twelve months ended December 31, 2012		3 years	548,031	(163,360)	$     384,671
Internal costs capitalized for the twelve months ended March 31, 2013		3 years	107,147	(8,929)	$      98,218
	Carrying value as of March  31, 2013				$ 647,710

Estimated future amortization expense is as follows for the following periods:

For the period ending March 31, 2013:
2013	$274,098
2014	272,909
2015	100,703
Total future amortization expense	$647,710

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.