Note 5 - Intangible Assets

12 Months Ended

Dec. 31, 2013

Note 5 - Intangible Assets

Note 5 - Intangible Assets

Note 5 – Intangible Assets

Intangible assets were comprised of the following at December 31, 2013 from Inception:

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		(272,583)	$	54,517
Internal costs capitalized for the twelve months ended December 31, 2012	3 years		548,031		(300,367)	$	247,664
Internal costs capitalized for the twelve months ended December 31, 2013	3 years		519,733		(105,751)	$	413,982
Carrying value as of Dec 31, 2013						$	716,163

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

For the period ending December 31, :
2014	$	410,438
2015		238,231
2016		67,494
Total future amortization expense	$	716,163

The 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.