Disclosure - Note 8 - Goodwill and other intangible assets (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Summary of changes in carrying amount of goodwill for the years

A summary of the changes in the carrying amount of goodwill for the two years in the period ended December 31, 2012, is shown below:

Balance as of January 1, 2011	$	3,599,386
Addition due to Cummings Creek acquisition		402,795
Goodwill impairment charges		3,396,941
Balance as of December 31, 2011		690,871
Goodwill impairment charges		–
Balance as of December 31, 2012	$	690,871

Amortizable assets

The tables below present amortizable intangible assets as of December 31, 2012 and 2011:

	Gross Carrying		Accumulated			Impairment				Net Carrying	Weighted  average remaining amortization
	Amount		Amortization			charge				Amount	period
December 31, 2012
Amortizable intangible assets:
Customer relationships	$	3,615,217	$	(2,507,782	)	$	(1,001,645	)	$	105,790		–
Knowhow and processes		2,924,790		(2,237,525	)		(687,265	)		–		–
IP Rights Agreement		1,300,000		(389,996	)		–			910,004		4.86 years
Customer backlog		1,801,055		(1,725,970	)		–			75,085		.01 years
Customer lists		279,717		(277,231	)		(2,486	)		–		–
Employment contract		165,000		(165,000	)		–			–		–
Customer contracts		113,600		(61,963	)		–			51,637		–
	$	10,199,379	$	(6,913,679	)	$	(1,691,396	)	$	1,142,518

	Gross Carrying		Accumulated			Impairment			Net Carrying		Weighted  average remaining amortization
December 31, 2011	Amount		Amortization			charge			Amount		period
Amortizable intangible assets:
Customer relationships	$	3,615,217	$	(2,430,214	)	$	(1,001,645	)	$	183,360		.15 years
Knowhow and processes		2,924,790		(2,237,525	)		(687,265	)		–		–
IP Rights Agreement		1,300,000		(260,000	)		–			1,040,000		5.63 years
Customer backlog		1,801,055		(1,519,618	)		–			281,437		1.54 years
Customer lists		279,717		(277,231	)		(2,486	)		–		–
Employment contract		165,000		(165,000	)		–			–		–
Customer contracts		113,600		(24,091	)		–			89,509		2.54 years
	$	10,199,379	$	(6,913,679	)	$	(1,691,396	)	$	1,594,306

Total intangible amortization expense

Estimated annual intangibles amortization expense as of December 31, 2012 is as follows:

2013		320,525
2014		171,993
2015		130,000
2016		130,000
2017		130,000
Thereafter		260,000
Total	$	1,142,518