Note 4. Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 4. Goodwill and Other Intangible Assets

The components of goodwill and intangible assets are as follows:

	December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer lists	$	500,000	$	(128,333	)	$	371,667
Customer relationships-noncontractual		25,000		(25,000	)		-
Proprietary software		51,000		(34,333	)		16,667
Goodwill		43,195		—			43,195
Total intangible assets	$	619,195	$	(187,666	)	$	431,529

	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer lists	$	70,000	$	(31,666	)	$	38,334
Customer relationships-noncontractual		25,000		(22,500	)		2,500
Proprietary software		50,000		(25,000	)		25,000
Goodwill		43,195		—			43,195
Total intangible assets	$	188,195	$	(79,166	)	$	109,029

Goodwill

At December 31, 2012 and 2011, our recorded goodwill totaled $43,195, which was solely related to our acquisition of Basset Press in July 2007.   We conducted our 2012 annual impairment analysis during the third quarter of 2012 and determined that our goodwill was not impaired.

Intangible Assets

In July 2007, as part of the Basset Press acquisition, we acquired $105,000 of identifiable intangible assets including $30,000 for customer lists, $25,000 for non-contractual customer relationships, and $50,000 for proprietary software or intellectual property.  These assets have been amortized over their useful lives of five or six years.  In June 2011, we acquired the rights to the customers of Edgar Tech Filing Services for $40,000. This asset has been recorded as a customer list and is being amortized over an estimated useful life of five years.  The Company acquired rights to all customer contracts of privately held SEC Compliance Services, Inc. (“SECCS”) on January 4, 2012.  The purchase price of $425,000 consisted of cash proceeds of $285,000 and 70,000 shares of common stock with a value of $140,000 based on the Company’s stock price of $2.00 per share on the close of business on January 4, 2012. The Company borrowed $275,000 from its line of credit to finance the transaction. The Company is amortizing the purchase price of $425,000 over its estimated useful life of five years.

We conducted our annual impairment analyses during the third quarters of 2012 and 2011 and determined that no intangible assets were impaired.

The amortization of intangible assets is a charge to operating expenses and totaled $108,500 and $24,000 in the years ended 2012 and 2011, respectively.

The future amortization of the identifiable intangible assets is as follows:

Years Ending December 31:
2013	$	102,333
2014		102,334
2015		94,000
2016		89,333
2017		334
Total	$	388,334