Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS - NET

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INTANGIBLE ASSETS - NET
 9 Months Ended
Sep. 30, 2015
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets Disclosure [Text Block]
4.
Intangible Assets – NET
 
Intangible assets-net as of September 30, 2015 and December 31, 2014 consist of following:
 
 
 
September 30,
 
December 31,
 
 
 
2015
 
2014
 
Contracts and relationships acquired
 
$
11,389,988
 
$
11,164,988
 
Non-compete agreements
 
 
1,244,272
 
 
1,206,272
 
Other intangible assets
 
 
836,692
 
 
309,486
 
Total intangible assets
 
 
13,470,952
 
 
12,680,746
 
Less: Accumulated amortization
 
 
(7,492,268)
 
 
(4,302,909)
 
 
 
 
 
 
 
 
 
Intangible assets - net
 
$
5,978,684
 
$
8,377,837
 
 
Amortization expense was $3,188,294 and $1,620,528 for the nine months ended September 30, 2015 and 2014, respectively, and $1,024,971 and $1,185,890 for the three months ended September 30, 2015 and 2014, respectively. The weighted-average amortization period is three years. Beginning in the second quarter of 2015, the Company changed to an accelerated method of amortization for the contracts and relationships intangible acquired in the CastleRock acquisition to better reflect the fair-value of such contracts and relationships after the settlement with CastleRock, and will use this accelerated method for all subsequent acquisitions. In connection with such settlement, the prohibition against one former employee of CastleRock, and his new employer, against soliciting or creating business relationships with former customers of CastleRock expired June 17, 2015. The effect of this change to an accelerated method of amortization did not have a material effect on the results of operations for the three months ended September 30, 2015 and will not have a material effect on future quarters.
 
As of September 30, 2015, future amortization expense scheduled to be expensed is as follows:
 
Years ending
 
 
 
December 31
 
 
 
2015 (three months)
 
$
970,778
 
2016
 
 
3,293,716
 
2017
 
 
1,609,544
 
2018
 
 
104,646
 
Total
 
$
5,978,684