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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Purchased software is measured at cost
less accumulated amortization. Expenditures on internally developed software is capitalized when the expenditure qualifies as development
activities; otherwise it is recognized in the statement of operations when incurred.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Intangible assets with a finite life
are amortized using the straight-line method over their estimated useful lives. Software and capitalized development costs related
to technology are amortized over five years.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;As of May 31, 2013, the Company capitalized
$561,044 of software development costs incurred under a Software Development Agreement entered into in January 2013.&amp;#160;&amp;#160;Amortization
will be recorded beginning in the subsequent quarter.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;



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 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 350

 -SubTopic 30

 -Section 50

 -Paragraph 2

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 350

 -SubTopic 30

 -Section 50

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 -URI http://asc.fasb.org/extlink&amp;oid=7658586&amp;loc=d3e16373-109275



Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 350

 -SubTopic 30

 -Section 50

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 -URI http://asc.fasb.org/extlink&amp;oid=7658586&amp;loc=d3e16265-109275



Reference 4: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 142

 -Paragraph 44, 45, 46

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



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