Annual report pursuant to Section 13 and 15(d)

Capitalized Technology

Capitalized Technology

12 Months Ended

Dec. 31, 2014

7. Capitalized Technology

Capitalized technology, net is as follows:

	December 31,
	2014		2013
Capitalized cost:
Balance, beginning of period	$	1,289,099	$	734,291
Additional capitalized cost		180,314		354,808
Purchased technology		-		200,000
Balance, end of period	$	1,469,413	$	1,289,099

Accumulated amortization:
Balance, beginning of period	$	596,588	$	331,401
Provision for amortization		346,755		265,187
Balance, end of period	$	943,343	$	596,588
Capitalized Technology, net	$	526,070	$	692,511

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. The Company recorded the $200,000 payment in general and administrative expenses in the accompanying statements of comprehensive loss income for the year ended December 31, 2013. Careerimp's former CEO was responsible for assisting the Company with the technical integration of the acquired technology platform.

Amortization expense of $346,755 and $265,187 for the years ended December 31, 2014 and 2013, respectively, is recorded in depreciation and amortization expense in the accompanying statement of comprehensive loss.