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8. Goodwill and Intangible assets
9 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
NOTE 8 - Goodwill and Intangible assets

Goodwill and intangible assets of the Company were as follows:

 

    September 30,     December 31,  
    2012     2011  
Intangible Assets                
Events                
Beverly Hills Concours   $     $ 2,500  
Santa Barbara Concours d'Elegance     53,000       53,000  
Cour Tour/Action Sports Tour     100,000       100,000  
Freedom Bowl           190,000  
Maui Music Festival           5,000  
Total - Events     153,000       350,500  
                 
Goodwill                
ProElite, Inc.     1,935,621       1,935,621  
Stratus White Visa Card     1,073,345       1,073,345  
Total Goodwill     3,008,966       3,008,966  
Total Goodwill and Intangible Assets   $ 3,161,966     $ 3,359,466  

 

In accordance with FASB ASC Topic 350 Goodwill and Other Intangible Assets, the Company’s intangible assets are considered to have indefinite lives and are therefore no longer amortized, but rather are subject to annual impairment tests. The purchased licensed technology and membership list for Stratus Rewards were amortized over their estimated useful life of 10 years but impairment charges were taken as of December 31, 2011 to reduce the carrying value of these items to zero. For the nine months ended September 30, 2012 and 2011, amortization of these items was $0 and $34,057, respectively.  For the three months ended September 30, 2012 and 2011, amortization was $0 and $11,353, respectively.

 

The Company’s annual impairment testing date is December 31, but the Company monitors the facts and circumstances for all intangible properties and will record impairment if warranted by adverse changes in facts and circumstances.   As of September 30, 2012, the Company elected to not pursue the Beverly Hills Concours, Maui Music Festival and Freedom Bowl events and took $197,500 of impairment charges to bring the value of these events to zero.