Intangible Assets and Goodwill |
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Apr. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill |
NOTE 7 - INTANGIBLE ASSETS AND GOODWILL
The Company accounts for intangible assets and goodwill in accordance with ASC 350. Goodwill and Other Intangible Assets, are evaluated on an annual basis, and when there is reason to believe that their values have been diminished or impaired write-downs will be included in results from operations.
The identifiable intangible assets acquired and their carrying value at April 30, 2011 and October 31, 2010 is:
Estimated annual amortization expense as of April 30, 2011 is as follows:
Amortization of patents, customer relationships, non-compete agreements and licenses included as a charge to income amounted to $34,545 and $77,417 for the six months ended April 30, 2011 and 2010, respectively. Amortization of patents, customer relationships, non-compete agreements and licenses included as a charge to income amounted to $15,012 and $38,940 for the three months ended April 30, 2011 and 2010, respectively. Goodwill is not being amortized.
As a result of the acquisitions of Martech, Colmek, Dragon and Tactical, the Company has goodwill in the amount of $3,348,924 as of April 30, 2011.The carrying amount of goodwill as of April 30, 2011 and October 31, 2010 is recorded below.
Considerable management judgment is necessary to estimate fair value. We enlist the assistance of an independent valuation consultant to determine the values of our intangible assets and goodwill, both at the dates of acquisition and at specific dates annually. Based on various market factors and projections used by management, actual results could vary significantly from managements estimates.
See Note 15 of the Unaudited Condensed Consolidated Financial Statement for current information on the status of Dragon and Tactical. |