|
7. Intangible Assets, Net
|
|
|
|
|
|
|
|
|
|
December 31,
2010 |
|
September 30,
2011 |
|
|
|
$
|
|
$
|
|
|
Intangible assets not subject to amortization are comprised of the following: |
|
|
|
|
|
|
|
|
Trademark |
|
|
720,473 |
|
|
750,834 |
|
|
Intangible assets subject to amortization are comprised of the following: |
|
|
|
|
|
|
|
|
Advertising agency agreement |
|
|
106,790,000 |
|
|
106,790,000 |
|
|
License agreements with SINA |
|
|
80,660,000 |
|
|
80,660,000 |
|
|
Exclusive rights with Baidu |
|
|
— |
|
|
43,475,563 |
|
|
Customer relationship |
|
|
7,443,088 |
|
|
11,734,268 |
|
|
Database license |
|
|
8,300,000 |
|
|
8,300,000 |
|
|
Favorable lease term |
|
|
2,428,110 |
|
|
7,692,972 |
|
|
Customer contracts |
|
|
3,343,892 |
|
|
4,110,744 |
|
|
Non-compete agreements |
|
|
2,074,417 |
|
|
3,428,149 |
|
|
Computer software licenses |
|
|
2,422,026 |
|
|
3,298,818 |
|
|
Domain name |
|
|
— |
|
|
95,590 |
|
| |
|
|
|
|
|
|
|
|
|
213,461,533 |
|
|
269,586,104 |
|
|
Less: Accumulated amortization |
|
|
|
|
|
|
|
|
Advertising agency agreement |
|
|
(13,087,010 |
) |
|
(20,939,216 |
) |
|
License agreements with SINA |
|
|
(10,082,500 |
) |
|
(16,132,000 |
) |
|
Exclusive rights with Baidu |
|
|
— |
|
|
(2,223,408 |
) |
|
Customer relationship |
|
|
(541,014 |
) |
|
(1,480,753 |
) |
|
Database license |
|
|
(1,220,589 |
) |
|
(1,952,942 |
) |
|
Favorable lease term |
|
|
(212,459 |
) |
|
(303,513 |
) |
|
Customer contracts |
|
|
(3,343,892 |
) |
|
(3,598,126 |
) |
|
Non-compete agreements |
|
|
(768,887 |
) |
|
(1,101,907 |
) |
|
Computer software licenses |
|
|
(1,013,890 |
) |
|
(1,483,108 |
) |
|
Domain name |
|
|
— |
|
|
(3,186 |
) |
| |
|
|
|
|
|
|
Intangible assets subject to amortization, net |
|
|
183,191,292 |
|
|
220,367,945 |
|
| |
|
|
|
|
|
|
Total intangible assets, net |
|
|
183,911,765 |
|
|
221,118,779 |
|
| |
|
|
|
|
|
In August 2011, the Group purchased exclusive rights from Baidu which allow it to sell Baidu's real estate related brand link product, which is a form of keyword advertising, and to use and operate the web link of "leju.baidu.com", which is Baidu's exclusive real estate-related web channel for $43,475,563. Such rights have a life of three years.
Amortization expense was $15,868,255 and $18,894,145 for the nine months ended September 30, 2010 and 2011, respectively. The Group expects to record amortization expense of $9,893,703, $38,046,984, $37,539,212, $30,248,068 and $21,074,741 for the three months ending December 31, 2011 and the years ending December 31, 2012, 2013, 2014 and 2015, respectively. |