Note 3 - Intangible Assets

9 Months Ended

Sep. 30, 2013

Notes

Note 3 - Intangible Assets

NOTE 3 - INTANGIBLE ASSETS

Intangible assets are recorded at cost and consist of the Trunity eLearning 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 nine months ended September 30, 2013 and 2012.

Intangible assets were comprised of the following at September 30, 2013:

Trunity eLearning 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	(245,325)	81,775
Internal costs capitalized for the twelve months ended December 31, 2012	3 years	548,031	(254,698)	293,333
Internal costs capitalized for the nine months ended September 30, 2013	3 years	378,330	(62,440)	315,890
Carrying value as of September 30, 2013				$   690,998

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

Remainder of 2013	$104,455
2014	363,304
2015	191,097
2016	32,142
Total future amortization expense	$690,998

The Company’s Trunity eLearning 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.