Note 3 - Intangible Assets

6 Months Ended

Jun. 30, 2014

Note 3 - Intangible Assets

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 three years. We annually assess intangible and other long-lived assets for impairment.  There was no impairment loss for the three months ended June 30, 2014 and 2013. Intangible assets were comprised of the following at June 30, 2014:

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		(327,100	)		—
Internal costs capitalized for the twelve months ended December 31, 2012	3 years		548,031		(391,706	)		156,325
Internal costs capitalized for the twelve months ended December 31, 2013	3 years		519,733		(192,373	)		327,360
Internal costs capitalized for the six months ended June 30, 2014	3 years		328,718		(38,764	)	$	289,954
Carrying value as of June 30, 2014							$	773,639

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

Remainder of 2014	$	232,746
2015		347,804
2016		177,067
2017		16,022
Total future amortization expense	$	773,639

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.