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Property and Equipment

9 Months Ended

Sep. 30, 2013

Property and Equipment

PROPERTY AND EQUIPMENT

Property and Equipment and Depreciation:

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided for over the estimated useful lives of the related asset using the straight-line method. The estimated useful lives for significant property and equipment categories are as follows:

Data processing equipment		3 to 5 years
Telecommunication equipment		5 years
Purchased software		3 years

The following is a summary of property and equipment, at cost less accumulated depreciation, at:


			September 30,				December 31,
		2013				2012
Furniture and fixtures		$	3,780			$	3,780
Data processing equipment			212,730				212,730
Telecommunication equipment			21,262				21,262
Purchased software			2,395				2,395
			240,167				240,167
Less: accumulated depreciation			(240,167	)			(240,167	)
Total property and equipment, net		$	-			$	-

Depreciation charged to operations amounted to approximately $0 for the nine months ended September 30, 2013 and 2012. Property and equipment include gross assets acquired under capital leases of approximately $0 at September 30, 2013 and 2012. Capital leases are included as a component of data processing equipment. Amortization of assets under capital leases is included in depreciation expense.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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