Note 6 - Goodwill and other intangible assets

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Goodwill and other intangible assets :

In accordance with the Goodwill and Other Intangibles Topic of the ASC, goodwill and indefinite-lived intangible assets are tested for impairment annually, and interim impairment tests are performed whenever an event occurs or circumstances change that indicate that it is more likely than not that an impairment has occurred. Goodwill is tested for impairment at the reporting unit level. As of September 30, 2012 and December 31, 2011, all goodwill was allocated to the Government Services Sector which was considered one reporting unit. As of September 30, 2012 there were no significant events that would indicate that there was an impairment to our goodwill.

A summary of the changes in the carrying amount of goodwill for the period ended September 30, 2012 and December 31, 2011, is shown below:

Balance as of January 1, 2011	$	3,599,386
Addition due to Cummings Creek acquisition		402,795
Goodwill impairment charges		(3,396,310	)
Balance as of December 31, 2011	$	690,871
Goodwill impairment charges		–
Balance as of September 30, 2012	$	690,871

The table below present amortizable assets as of September 30, 2012: 

	Gross Carry amount		Accumulated Amortization		Net Carry amount		Weighted Average Remaining Amortization Period
Purchase intangible associated with CLR purchase	$	759,000	$	446,042	$	312,958		1.79 years
IP Rights Agreement		1,300,000		357,494		942,506		4.88 years
	$	2,059,000	$	803,536	$	1,255,464

2012	$	112,952
2013		320,525
2014		171,987
2015		130,000
2016		130,000
Thereafter		390,000
Total	$	1,255,464