Note 3 - Intangible Assets

6 Months Ended

Jun. 30, 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 for the three and six months ended June 30, 2013 and 2012.

Intangible assets were comprised of the following at June 30, 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	(342,345)	-
Internal costs capitalized for the twelve months ended December 31, 2011	3 years	327,100	(218,066)	109,034
Internal costs capitalized for the twelve months ended December 31, 2012	3 years	548,031	(209,029)	339,002
Internal costs capitalized for the twelve months ended June 30, 2013	3 years	$263,798	$ (30,912)	$ 232,886
Carrying value as of June 30, 2013				$   680,922

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

Remainder of 2013	$189,822
2014	325,126
2015	152,919
2016	13,055
Total future amortization expense	$680,922

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.