NOTE 8 – INTANGIBLE ASSETS

Intangible assets consisted of the following:

(A) Product Licenses

Product licenses include internally developed original license issues, renewals, enhancements, copyrights, trademarks, and trade names. Product licenses are amortized on a straight-line basis over their respective lives, and the unamortized amount of $24,777,549 will be amortized over the next 9 years. Amortization expense for the three and nine months ended March 31, 2015 was $873,675 and $2,625,040, respectively. Amortization expense for the three and nine months ended March 31, 2014 was $612,792 and $1,329,470, respectively.

(B) Customer Lists

Customer lists were being amortized on a straight-line basis over five years, which approximated the anticipated rate of attrition. Amortization expense for the three and nine months ended March 31, 2015 was $88,282 and $114,286, respectively. Amortization expense for the three and nine months ended March 31, 2014 was $13,235 and $62,115, respectively.

(C) Technology

Technology assets were being amortized on a straight-line basis over five years, which approximated the anticipated rate of attrition. Amortization expense for the three and nine months ended March 31, 2015 was $111,700. Amortization expense for the three and nine months ended March 31, 2014 was $12,935 and $37,712 respectively.

(D) Future Amortization

Estimated amortization expense of intangible assets over the next five years is as follows: