GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2014

The changes in the carrying amount of intangible assets for the year ended December 31, 2014 and 2013 were as follows:

	2014		2013
Balance at beginning of year	$	3,724,354	$	4,631,577
Addition: Non-compete agreement		587,500		-
Deduction: Amortization expense		(1,004,057)		(907,223)
Balance at end of year	$	3,307,797	$	3,724,354

The following table sets forth the components of these intangible assets as of December 31, 2014 and 2013:

		As of December 31, 2014
	Estimated	Adjusted				Net Amount
	Useful	Carrying		Accumulated		as of
	Life	Amount		Amortization		12/31/2014

Trade name	20 years	$	704,458	$	(291,877)	$	412,581
Patents and copyrights	17 years		1,117,842		(511,698)		606,144
Non-compete agreements	15 months		897,500		(427,500)		470,000
Developed technology	7 years		3,941,310		(3,829,900)		111,410
Backlog	3 years		303,400		(303,400)		-
Non-contractual customer relationships	15 years		3,268,568		(1,560,906)		1,707,662
		$	10,233,078	$	(6,925,281)		3,307,797

	As of December 31, 2013
	Adjusted				Net
	Carrying		Accumulated		as of
	Amount		Amortization		12/31/2013

Trade name	$	704,458	$	(260,641)	$	443,817
Patents and copyrights		1,117,842		(454,421)		663,421
Non-compete agreements		310,000		(268,667)		41,333
Developed technology		3,941,310		(3,295,135)		646,175
Backlog		303,400		(303,400)		-
Non-contractual customer relationships		3,268,568		(1,338,960)		1,929,608
	$	9,645,578	$	(5,921,224)	$	3,724,354

The following summarizes amortization of acquisition related intangible assets included in the statement of operations:

The Company expects that amortization expense for the next five succeeding years will be as follows: