Quarterly report pursuant to sections 13 or 15(d)

INTELLECTUAL PROPERTY AND INTANGIBLE ASSETS

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INTELLECTUAL PROPERTY AND INTANGIBLE ASSETS
 6 Months Ended
Jun. 30, 2013
Notes to Financial Statements  
INTELLECTUAL PROPERTY AND INTANGIBLE ASSETS

Intellectual property and intangible assets consisted of the following at:

 

  June 30,
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   (2,810,003 )   (2,015,551 )
  $ 17,755,964   $ 18,550,416  

 

Amortization expense was $794,452 and $786,347 for the six months ended June 30, 2013 and 2012, respectively.

 

Included in intangible assets at June 30, 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