Note 3 - Intangible Assets

9 Months Ended

Sep. 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 nine months ended September 30, 2014 and 2013. Intangible assets were comprised of the following at September 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		(437,375	)		110,656
Internal costs capitalized for the twelve months ended December 31, 2013	3 years		519,733		(235,684	)		284,049
Internal costs capitalized for the nine months ended September 30, 2014	3 years		491,772		(79,745	)	$	412,027
Carrying value as of September 30, 2014							$	806,732

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

Remainder of 2014	$	129,961
2015		402,155
2016		231,418
2017		43,198
Total future amortization expense	$	806,732

The Trunity eLearning Platformtechnology 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 related to the continual development and enhancements of the platform for version 3.0 and mobile apps.  Amortization of three years is based on management’s best estimate of useful life of current technology in this industry.