Annual report pursuant to section 13 and 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
12 Months Ended
Sep. 30, 2011
INTANGIBLE ASSETS
5.
INTANGIBLE ASSETS

The Company’s intangible assets consist of licenses for the use of Internet domain names, Universal Resource Locators, or URLs, capitalized website development costs, other information technology licenses and marketing and technology related intangibles acquired through the acquisition of LiveDeal, Inc.  All such assets are capitalized at their original cost and amortized over their estimated useful lives ranging from three to 20 years.
 
The Company performed its annual impairment analysis and determined that no impairment existed at September 30, 2011 and 2010.  In connection with the discontinued operations related to the Direct Sales business, net intangible assets of $367,588 were written off in the second fiscal quarter of 2011.

The following summarizes estimated future amortization expense related to intangible assets that have net balances as of September 30, 2011:

Years ended September 30,
     
2012
  $ 108,828  
2013
    79,662  
2014
    77,422  
2015
    77,422  
2016
    77,422  
Thereafter
    801,578  
Total
  $ 1,222,334  


Total amortization expense related to intangible assets was $349,030 and non-cash impairment charges of $367,588 was associated with the write off of net intangible assets from discontinued operations for the year ended September 30, 2011.  Total amortization expense related to intangible assets was $632,744 for the year ended September 30, 2010.