Telkonet, Inc. Quarterly report pursuant to Section 13 or 15(d)

3. INTANGIBLE ASSETS AND GOODWILL (Tables)

9 Months Ended

Sep. 30, 2012

Total identifiable intangible assets acquired and their carrying values at September 30, 2012 are:

	Cost		Accumulated Amortization			Carrying Value		Weighted Average Amortization Period (Years)
Amortized Identifiable Intangible Assets:
Subscriber lists – EthoStream	$	2,900,000	$	(1,339,283	)	$	1,560,717		12.0
Total Amortized Identifiable Intangible Assets		2,900,000		(1,339,283	)		1,560,717
Goodwill – EthoStream	5,796,430			-			5,796,430
Goodwill – SSI	2,774,016			-			2,774,016
Total Goodwill		8,570,446		-			8,570,446
Total	$	11,470,446	$	(1,339,283	)	$	10,131,163

Total identifiable intangible assets acquired and their carrying values at December 31, 2011 are:

	Cost		Accumulated Amortization			Impairment		Carrying Value		Weighted Average Amortization Period (Years)
Amortized Identifiable Intangible Assets:
Subscriber lists – EthoStream	$	2,900,000	$	(1,158,023	)	$	-	$	1,741,977		12.0
Total Amortized Identifiable Intangible Assets		2,900,000		(1,158,023	)		-		1,741,977
Goodwill – EthoStream	5,796,430			-			-		5,796,430
Goodwill – SSI	5,874,016			-			(3,100,000)		2,774,016
Total Goodwill	11,670,446			-			(3,100,000)		8,570,446
Total	$	14,570,446	$	(1,158,023	)	$	(3,100,000)	$	10,312,423