Quarterly report pursuant to sections 13 or 15(d)

INTELLECTUAL PROPERTY AND INTANGIBLE ASSETS

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INTELLECTUAL PROPERTY AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
INTELLECTUAL PROPERTY AND INTANGIBLE ASSETS

 

Intellectual property and intangible assets consisted of the following at:

 

    March 31, 2013   December 31, 2012
Intellectual property   $ 16,355,967     $ 16,355,967  
Territory     150,000       150,000  
Non-compete     660,000       660,000  
Customer relationships     3,400,000       3,400,000  
      20,565,967       20,565,967  
Less: Accumulated amortization     (2,412,777 )     (2,015,551 )
    $ 18,153,190     $ 18,550,416  

 

Amortization expense was $397,226 and $406,713 for the three months ended March 31, 2013 and 2012, respectively.

 

Included in intangible assets at March 31, 2013 and December 31, 2012 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