Intangible Assets

12 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

NOTE 8 – INTANGIBLE ASSETS

Intangible assets consisted of the following:

	Product Licenses			Customer Lists			Technology			Total
Intangible assets - June 30, 2013 - cost	$	44,837,558		$	6,052,378		$	242,702		$	51,132,638
Additions		3,385,151			-			-			3,385,151
Deletion		(591,216	)								(591,216	)
Effect of translation adjustment		1,000,875			-			-			1,000,875
Accumulated amortization		(20,050,310	)		(5,940,633	)		(133,487	)		(26,124,430	)
Net balance - June 30, 2014	$	28,582,058		$	111,745		$	109,215		$	28,803,018
Intangible Assets - June 30, 2014 - Cost	$	48,632,368		$	6,052,377		$	242,702		$	54,927,447
Additions		-			-			-			-
Effect of Translation Adjustment		(2,325,008	)		-			-			(2,325,008	)
Accumulated Amortization		(23,491,893	)		(6,052,377	)		(242,702	)		(29,786,972	)
Net Balance - June 30, 2015	$	22,815,467		$	-		$	-		$	22,815,467

(A) Product Licenses

Product licenses include internally-developed original license issues, renewals, enhancements, copyrights, trademarks, and trade names. Product licenses are amortized on a straight-line basis over their respective lives, and the unamortized amount of $22,815,467 will be amortized over the next 8.75 years. Amortization expense for the years ended June 30, 2015 and 2014 was $4,448,735 and $3,568,366, respectively.

The Company determined to discontinue marketing three products during the fiscal year ended June 30, 2015 and fully amortized the products as of June 30, 2015. The amount of amortization related to these three products was $1,184,959 and is recorded under cost of revenues as depreciation and amortization expense in the accompanying consolidated statements of operations.

(B) Customer Lists

Customer lists were being amortized on a straight-line basis over five years, which approximates the anticipated rate of attrition. Amortization expense for the years ended June 30, 2015 and 2014 was $113,243 and $75,578, respectively.

(C) Technology

Technology assets were being amortized on a straight-line basis over five years, which approximates the anticipated rate of attrition. Amortization expense for the years ended June 30, 2015 and 2014 was $110,681 and $50,870, respectively.

(D) Future Amortization

Estimated amortization expense of intangible assets over the next five years is as follows:

Year ended:
June 30, 2016	$	2,804,844
June 30, 2017		2,804,844
June 30, 2018		2,804,844
June 30, 2019		2,804,844
June 30, 2020		2,804,844
Thereafter		8,791,247
	$	22,815,467