Annual report pursuant to Section 13 and 15(d)

Capitalized Technology

Capitalized Technology

12 Months Ended

Dec. 31, 2015

6. Capitalized Technology

Capitalized Technology, net is as follows:

	December 31,
	2015		2014
Capitalized cost:
Balance, beginning of period	$	1,469,413	$	1,289,099
Additional capitalized cost		419,359		180,314
Balance, end of period	$	1,888,772	$	1,469,413

Accumulated amortization:
Balance, beginning of period	$	943,343	$	596,588
Provision for amortization		488,906		346,755
Balance, end of period	$	1,432,249	$	943,343
Capitalized Technology, net	$	456,523	$	526,070

Amortization expense of $488,906 and $346,755 for the years ended December 31, 2015 and 2014, respectively, is recorded in depreciation and amortization expense in the accompanying statement of comprehensive loss.

- Definition

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

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