Quarterly report pursuant to sections 13 or 15(d)

Goodwill And Other Intangible Assets

Goodwill And Other Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill And Other Intangible Assets

4.	Goodwill and Other Intangible Assets:

At June 30, 2011, the Company had the following intangible assets:


	June 30, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets subject to amortization:
Patents	$	1,303,125	$	(162,514	)	$	1,140,611
Trademarks		908,688		(165,726	)		742,962
Customer relationships		1,010,000		(319,833	)		690,167
Non-compete agreement		60,000		(47,500	)		12,500
Product certification and licensing costs		136,906		(37,849	)		99,057

	$	3,418,719	$	(733,422	)	$	2,685,297

Intangible assets not subject to amortization:
Goodwill	$	2,396,289	$	—		$	2,396,289

At December 31, 2010, the Company had the following intangible assets:


	December 31, 2010
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intangible assets subject to amortization:
Patents	$	1,233,701	$	(128,771	)	$	1,104,930
Trademarks		907,998		(139,148	)		768,850
Customer relationships		1,010,000		(269,333	)		740,667
Non-compete agreement		60,000		(40,000	)		20,000
Product certification and licensing costs		130,956		(15,393	)		115,563

	$	3,342,655	$	(592,645	)	$	2,750,010

Intangible assets not subject to amortization:
Goodwill	$	2,396,289	$	—		$	2,396,289

Remaining estimated annual amortization expense is as follows:


Year Ending December 31:
2011	$	142,052
2012		274,100
2013		253,710
2014		223,828
2015		223,466
Thereafter		1,309,482

	$	2,426,638

At June 30, 2011, the Company had $258,659 of patent applications and pending patents and trademarks. Estimated annual amortization for these patent applications and pending patents and trademarks is not included in the table above.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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