Quarterly report pursuant to Section 13 or 15(d)

6. INTANGIBLE ASSETS, NET

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6. INTANGIBLE ASSETS, NET
9 Months Ended
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS, NET

We amortize the identifiable intangible assets using the straight-line method over a useful life of five years. We determined that the useful life of those assets are based on the term of the applicable noncompete agreement and estimated lives of relationships acquired. Amortization of intangible assets is expected to be approximately $822,000 for the years ending December 31, 2015, 2016 and 2017 and $68,500 for the year ending December 31, 2018.

 

Intangible assets consisted of the following at September 30, 2015 and December 31, 2014:

 

    Original Fair Market Value     Accumulated Amortization     Net  
Balance - September 30, 2015:                        
Vendor relationships   $ 1,170,000     $ 624,000     $ 546,000  
Trade name     230,000       122,667       107,333  
Noncompete agreement     2,710,000       1,444,833       1,265,167  
    $ 4,110,000     $ 2,191,500     $ 1,918,500  
                         
Balance - December 31, 2014:                        
Vendor relationships   $ 1,170,000     $ 448,000     $ 722,000  
Trade name     230,000       88,167       141,833  
Noncompete agreement     2,710,000       1,038,833       1,671,167  
    $ 4,110,000     $ 1,575,000     $ 2,535,000  

 

Amortization expense for the three months ended September 30, 2015 and 2014 totaled $205,500 and $205,500, respectively, and totaled $616,500 and $616,500 for the nine months ended September 30, 2015 and 2014, respectively.