Intangible Assets

12 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 6 – Intangible Assets

Intangible assets at September 30, 2013 and 2012 consist of the following:

	Useful	Gross		Accumulated
September 30, 2013	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	5,145,638	$	2,645,715	$	2,499,923
Know How	15	$	512,000	$	179,283		332,717
Trade Names	15 or Indefinite	$	547,802	$	75,856		471,946
Biomedical Technologies	5	$	300,000	$	120,003		179,997
		$	6,505,440	$	3,020,857	$	3,484,583

	Useful	Gross		Accumulated
September 30, 2012	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	7,858,775	$	2,257,533	$	5,601,242
Know How	15		512,000		145,147		366,853
Trade Names	15 or Indefinite		558,435		63,222		495,213
Biomedical Technologies	5		300,000		60,003		239,997
		$	9,229,210	$	2,525,905	$	6,703,305

In the second quarter of 2013, as a result of a decision to dispose of a significant portion of the Products reporting unit, the Company performed an interim impairment test of long lived assets and goodwill associated with its Dynasil Products reporting unit. Under step two of the impairment testing, the income method was used to allocate the fair values of all of the assets and liabilities of this reporting unit, with the remaining residual fair value allocated to goodwill. The result of this impairment test was to write off $2.8 million of the Acquired Customer Base intangible asset.

Amortization expense for the years ended September 30, 2013 and 2012 was $491,974 and $802,511 respectively. Estimated amortization expense for each of the next five fiscal years is as follows:

	2014		2015		2016		2017		2018		Thereafter		Total
Acquired Customer Base	$	233,079	$	233,079	$	233,079	$	233,079	$	233,079	$	1,334,528	$	2,499,923
Know How		34,214		34,214		34,214		34,214		34,214		161,647		332,717
Trade Names		14,600		14,600		14,600		14,600		14,600		61,161		134,161
Biomedical Technologies		60,000		60,000		59,997		-		-		-		179,997
	$	341,893	$	341,893	$	341,890	$	281,893	$	281,893	$	1,557,336	$	3,146,798