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Intangible Assets, Goodwill and Other
3 Months Ended
Sep. 30, 2011
Intangible Assets, Goodwill and Other 
Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 - Capitalized Website Costs

 

The Company amortizes its website over the estimated useful life of three years. The carrying amount and accumulated amortization related to the website costs as of September 30, 2011 and December 31, 2010, are as follows:

 

 

September 30,

December 31,

 

2011

2010

 

 

 

Gross balance

$633,589

$633,589

Less: Accumulated amortization

-404,395

-257,645

 Loss on website impairment

-229,194

 

Net balance

$           -  

$375,944

 

 

Total amortization expenses were $146,750 and $158,397 for the nine months ended September30, 2011 and 2010, respectively. Amortizable intangible assets are tested for impairment when impairment indicators are present, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. As a result of the impairment testing, the Company determined that the value of website was significantly impaired due to sales of Paragon Toner division. Net value of website is $0 and $375,944 as of September 30, 2011 and December 31 2010, respectively.