Quarterly report pursuant to Section 13 or 15(d)

Capitalized Technology

Capitalized Technology

9 Months Ended

Sep. 30, 2014

5. Capitalized Technology

Capitalized Technology, net is as follows:

	September 30, 2014		December 31, 2013
Capitalized cost:
Balance, beginning of period	$	1,289,099	$	734,291
Additional capitalized cost		125,291		354,808
Purchased technology		-		200,000
Balance, end of period	$	1,414,390	$	1,289,099

Accumulated amortization:
Balance, beginning of period	$	596,588	$	331,401
Provision for amortization		258,747		265,187
Balance, end of period	$	855,335	$	596,588
Capitalized Technology, net	$	559,055	$	692,511

Amortization expense of $84,614 and $61,855 for the three months ended September 30, 2014 and 2013, respectively, and $258,747 and $169,475 for the nine months ended September 30, 2014 and 2013, respectively, is recorded in depreciation and amortization expense in the accompanying condensed consolidated statements of comprehensive loss.