Note 3. Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2014

Note 3. Intangible Assets And Goodwill Tables

Fair value of PIR intangible assets and goodwill

The transaction resulted in recording intangible assets and goodwill at a fair value of $5,014,030 as follows:

Total Consideration	$	3,450,000
Plus:  Liabilities assumed in excess of tangible assets		1,564,030
Total fair value of PIR intangible assets and goodwill	$	5,014,030

The remaining purchase price was allocated among the PIR identifiable intangible assets and goodwill acquired based on their estimated fair values determined as discussed above and was as follows:

Amortizable intangible assets	$	3,300,000
Trademarks		720,000
Goodwill		994,030
Total fair value of PIR intangible assets and goodwill	$	5,014,030

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		(1,352,831	)
Deferred revenue		(1,452,780	)
Net tax liabilities		(1,109,464	)
Total liabilities		(3,915,075	)
Liabilities assumed in excess of tangible assets	$	(1,564,030	)

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

	Six Months Ended June 30, 2013
Revenues	$	8,780,000
Net Income	$	709,000
Basic earnings per share	$	0.36
Diluted earnings per share	$	0.35