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

Quarterly report pursuant to Section 13 or 15(d)

3. INTANGIBLE ASSETS AND GOODWILL (Tables)

3. INTANGIBLE ASSETS AND GOODWILL (Tables)

6 Months Ended

Jun. 30, 2012

Intangible Assets And Goodwill Tables

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

	Cost		Accumulated Amortization			Carrying Value		Weighted Average Amortization Period (Years)
Amortized Identifiable Intangible Assets:
Subscriber lists – EthoStream	$	2,900,000	$	(1,278,863	)	$	1,621,137		12.0
Total Amortized Identifiable Intangible Assets		2,900,000		(1,278,863	)		1,621,137
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	$	(1,278,863	)	$	10,191,583

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

Total amortization expense charged to operations for each of the three and six months ended June 30, 2012 and 2011 was $60,420 and $120,840, respectively.

Estimated amortization expense

Estimated amortization expense as of June 30, 2012 is as follows:

Remainder of 2012	$	120,840
2013		241,680
2014		241,680
2015		241,680
2016		241,680
2017		241,680
2018 and after		291,897
Total	$	1,621,137