6. Capitalized Technology

 

Capitalized Technology, net is as follows:

 

		September 30, 2013				December 31, 2012
Capitalized cost:
Balance, beginning of period		$	734,291			$	376,044
Additional capitalized cost			243,325				358,247
Purchased technology			200,000				-
Balance, end of period		$	1,177,616			$	734,291
Accumulated amortization:
Balance, beginning of period		$	331,401			$	229,897
Provision for amortization			169,475				101,504
Balance, end of period		$	500,876			$	331,401
Net Capitalized Technology		$	676,740			$	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. The Company switched over to the platform, dubbed "V2," 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. The Company recorded $100,000 of this contingent liability, which is included as a component of accrued expenses in the accompanying condensed balance sheet at September 30, 2013 and also included in general and administrative expenses in the accompanying condensed statements of comprehensive (loss) income for the three and nine months ended September 30, 2013. Careerimp's former CEO is responsible for assisting the Company with the technical integration of the acquired technology platform.

 

Amortization expense of $61,856 and $39,557 for the three months ended September 30, 2013 and 2012, respectively, and $169,475 and $75,822 for the nine months ended September 30, 2013 and 2012, respectively, is recorded in depreciation and amortization expense in the accompanying condensed statement of comprehensive (loss) income.