Annual report pursuant to section 13 and 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
INTANGIBLE ASSETS

 

Intangible assets consisted of the following at December 31, 2012 and 2011:

 

    2012   2011
Patents   $ 13,615,967     $ 13,615,967  
Customer relationships     3,400,000       3,400,000  
Trademarks     2,740,000       2,740,000  
Non-compete agreements     660,000       660,000  
Other intangible assets     150,000       150,000  
      20,565,967       20,565,967  
Less: accumulated amortization     (2,015,551 )     (454,204 )
Intangible assets, net   $ 18,550,416     $ 20,111,763  

 

Included in amortization expense was $1,561,347 and $413,858 related to the above intangible assets for the years ended December 31, 2012 and 2011, respectively.

 

Included in intangible assets at December 31, 2012 and 2011 are other intangible assets of $150,000. This amount relates to the 2008 purchase of a regional territory from an outside sales representative. The total value of this agreement was $150,000 and the resulting intangible asset has an infinite life.

 

In October 2011, we acquired the following intangible assets related to the asset purchase with Prime Table Games:

 

    Fair Value
Patents   $ 13,259,000  
Customer relationships     3,400,000  
Trademarks     2,740,000  
Goodwill     1,091,000  
Non-compete agreement     660,000  
Total   $ 21,150,000