WEBSITE DEVELOPMENT COSTS

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

WEBSITE DEVELOPMENT COSTS

The Company has capitalized costs in developing their website and web-based products, which consisted of the following as of September 30, 2011 and December 31, 2010:

	September 30, 2011			December 31, 2010
OptimizeRx web development	$	154,133		$	154,133
SampleMD web development		486,522			332,107
Subtotal, web development costs		640,655			486,240
Accumulated amortization		(142,811	)		(95,050	)
Impairment		(59,083	)		(59,083	)
Web development costs, net	$	438,761		$	332,107

The Company began amortizing the OptimizeRx website costs, using the straight-line method over the estimated useful life of 5 years, once it was put into service in December of 2007. During the year end December 31, 2009, the Company began a new web-based project and the related programming and development costs have been capitalized for the SampleMD website. The project was completed in mid-December 2010 and no amortization was recorded in 2010. Amortization began on the straight-line method in January 2011 over the period of five years. Although the Project was completed in mid-December, the Company continues to enhance and upgrade the website. Monthly payments for these upgrades have been capitalized, but not amortized, as of September 30, 2011. The Company determined that the original OptimizeRx website was no longer useful so the remaining unamortized balance of $59,083 was impaired as of December 31, 2010. Amortization expense was $47,761 for the nine months ended September 30, 2011 and $30,827 for the year ended December 31, 2010, respectively.