Quarterly report pursuant to Section 13 or 15(d)

Capitalized Technology

Capitalized Technology

6 Months Ended

Jun. 30, 2013

5. Capitalized Technology

Capitalized Technology, net is as follows:

	June 30, 2013		December 31, 2012
Capitalized cost:
Balance, beginning of period	$	734,291	$	376,044
Additional capitalized cost		164,875		358,247
Purchased technology		200,000		-
Balance, end of period	$	1,099,166	$	734,291

Accumulated amortization:
Balance, beginning of period	$	331,401	$	229,897
Provision for amortization		107,620		101,504
Balance, end of period	$	439,021	$	331,401
Net Capitalized Technology	$	660,145	$	402,890

Beginning the third quarter of 2012, the Company embarked on updating the technology stack of its web product platform to support emerging technologies. Dubbed "V2", the platform was switched over to at the end of year 2012, though the development and improvement will continue on an ongoing basis.

On June 14, 2013, the Company completed the purchase of a proprietary software technology from Careerimp, Inc. ("Careerimp") for $200,000. The Company concurrently hired Careerimp's former CEO and committed to pay Careerimp an additional $200,000 contingent upon the former CEO's continued employment through December 31, 2013. Careerimp's former CEO is responsible for assisting the Company with the technical integration of the acquired technology platform.

Amortization expense of $56,125 and $18,554 for the three months ended June 30, 2013 and 2012, respectively, and $107,619 and $36,265 for the six months ended June 30, 2013 and 2012, respectively, is recorded in depreciation and amortization expense in the accompanying condensed statement of comprehensive (loss) income.