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

3. INTANGIBLE ASSETS AND GOODWILL (Tables)

3 Months Ended

Mar. 31, 2013

Total identifiable intangible assets acquired and their carrying values at March 31, 2013 are:

	Cost		Accumulated Amortization			Carrying Value		Weighted Average Amortization Period (Years)
Amortized Identifiable Intangible Assets:
Subscriber lists – EthoStream	$	2,900,000	$	(1,460,123	)	$	1,439,877		12.0
Total Amortized Identifiable Intangible Assets		2,900,000		(1,460,123	)		1,439,877
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	$	(1,460,123	)	$	10,010,323

Total identifiable intangible assets acquired and their carrying values at December 31, 2012 are:

	Cost		Accumulated Amortization			Accumulated Impairment		Carrying Value		Weighted Average Amortization Period (Years)
Amortized Identifiable Intangible Assets:
Subscriber lists – EthoStream	$	2,900,000	$	(1,399,703	)	$	–	$	1,500,297		12.0
Total Amortized Identifiable Intangible Assets		2,900,000		(1,399,703	)		–		1,500,297
Goodwill – EthoStream	8,796,430			–			(3,000,000)		5,796,430
Goodwill – SSI	5,874,016			–			(3,100,000)		2,774,016
Total Goodwill	14,670,446						(6,100,000)		8,570,446
Total	$	17,570,446	$	(1,399,703	)	$	(6,100,000)	$	10,070,743

Estimated amortization expense as of March 31, 2013 is as follows: