INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2012

INTANGIBLE ASSETS

INTANGIBLE ASSETS

3. INTANGIBLE ASSETS

Intangible assets consist of patents, patent applications, licenses and covenants not to compete arising from business combinations.  Capitalized patent application costs are included with patents.  Intangible assets are amortized on a straight-line basis over their estimated useful lives or terms of their agreement, whichever is shorter.  The Company wrote off costs related to patent applications of $23,000 in 2012 and $1,000 in 2011.  No other impairment adjustments to intangible assets were made during the years ended December 31, 2012 or 2011.

Intangible assets at December 31, 2012 and 2011 consist of the following:

	December 31, 2012					December 31, 2011
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Amortized intangible assets:
Patents	$	384,464	$	(141,447	)	$	350,816	$	(130,166	)
Licenses	100,000		(83,334		)	100,000		(75,628		)
Non-compete agreements	303,000		(257,326		)	303,000		(221,660		)
	$	787,464	$	(482,107	)	$	753,816	$	(427,454	)
						2012		2011
Aggregate amortization expense:
For the years ended December 31						$	54,653	$	50,471
Estimated amortization expense for the years ending December 31:
2013						$	50,000
2014						21,000
2015						17,000
2016						14,000
2017						14,000

In connection with the license agreements, the Company has agreed to pay royalties ranging from 3% to 5% on the sales of products subject to the agreements.  The Company incurred $87,000 of expense under these agreements during 2012, and $94,000 during 2011 which have been included in selling, general and administrative expenses in the Statements of Income.