Note 4. Intangible Assets (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Note 4. Intangible Assets Tables

Fair value of PIR intangible assets and goodwill

Total Consideration	$	3,450,000
Plus:  Liabilities assumed in excess of tangible assets		2,029,692
Total fair value of PIR intangible assets and goodwill	$	5,479,692
Allocation of PIR intangible assets and goodwill:
Amortizable intangible assets	$	3,300,000
Trademarks		720,000
Goodwill		1,459,692
Total fair value of PIR intangible assets and goodwill	$	5,479,692

	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

Assets and liabilities acquired

Cash	$	271,602
Accounts receivable		1,405,208
Prepaid expenses and other assets		366,876
Furniture, equipment, and improvements		297,076
Deposits		10,283
Total assets		2,351,045
Accounts payable and accrued expenses		(1,790,133	)
Deferred revenue		(1,452,780	)
Net tax liabilities		(1,137,824	)
Total liabilities		(4,380,737	)
Liabilities assumed in excess of tangible assets	$	2,029,692

Amortizable intangible assets

	Asset Amount		Useful Life (years)
Client relationships	$	1,480,000		7
Customer list		1,270,000		3
Software		550,000		3
	$	3,300,000

Unaudited condensed pro-forma financial results

	Nine Months Ended
	September 30,
	2013			2012
Revenues		$	12,288,244		$	13,826,544
Net Income		$	839,595		$	738,101
Basic earnings per share		$	0.43		$	0.39
Diluted earnings per share		$	0.41		$	0.38

Schedule of future amortization of intangible assets

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