Quarterly report pursuant to Section 13 or 15(d)

Capitalized Technology

Capitalized Technology

3 Months Ended

Mar. 31, 2014

4. Capitalized Technology

Capitalized Technology, net is as follows:

	March 31, 2014		December 31, 2013
Capitalized cost:
Balance, beginning of period	$	1,289,099	$	734,291
Additional capitalized cost		48,313		354,808
Purchased technology		-		200,000
Balance, end of period	$	1,337,412	$	1,289,099

Accumulated amortization:
Balance, beginning of period	$	596,588	$	331,401
Provision for amortization		85,026		265,187
Balance, end of period	$	681,614	$	596,588
Capitalized Technology, net	$	655,798	$	692,511

Amortization expense of $85,026 and $51,495 for the three months ended March 31, 2014 and 2013, respectively, is recorded in depreciation and amortization expense in the accompanying condensed statement of comprehensive loss.