Quarterly report pursuant to Section 13 or 15(d)

Capitalized Technology

Capitalized Technology

6 Months Ended

Jun. 30, 2014

4. Capitalized Technology

Capitalized Technology, net is as follows:

	June 30, 2014		December 31, 2013
Capitalized cost:
Balance, beginning of period	$	1,289,099	$	734,291
Additional capitalized cost		97,918		354,808
Purchased technology		-		200,000
Balance, end of period	$	1,387,017	$	1,289,099

Accumulated amortization:
Balance, beginning of period	$	596,588	$	331,401
Provision for amortization		174,133		265,187
Balance, end of period	$	770,721	$	596,588
Capitalized Technology, net	$	616,296	$	692,511

Amortization expense of $89,107 and $56,125 for the three months ended June 30, 2014 and 2013, respectively, and $174,133 and $107,619 for the six months ended June 30, 2014 and 2013, respectively, is recorded in depreciation and amortization expense in the accompanying condensed statements of comprehensive loss.