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

C. INTANGIBLE ASSETS AND GOODWILL (Tables)

9 Months Ended

Sep. 30, 2013

Total identifiable intangible assets acquired and their carrying values at September 30, 2013 are:

	Cost		Accumulated Amortization			Carrying Value		Weighted Average Amortization Period (Years)
Amortized Identifiable Intangible Assets:
Subscriber lists – EthoStream	$	2,900,000	$	(1,580,963	)	$	1,319,037		12.0
Total Amortized Identifiable Intangible Assets		2,900,000		(1,580,963	)		1,319,037
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	$	(1,580,963	)	$	9,889,483

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

	Original 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 future amortization expense as of September 30, 2013 is as follows: