Software Development Costs, Net

12 Months Ended

Dec. 31, 2014

Note 5 — Software Development Costs, Net

	December 31, 2014		December 31, 2013

Software Development Costs	$	859,351	$	240,561
Less: Accumulated Amortization		(71,613)		—

Net	$	787,738	$	240,561

Total amortization expense for capitalized software development costs for the years ending December 31, 2014 was $71,613 and $-0- for 2013. These costs are being amortized over 3 years. The software was completed in September 2014. No amortization was recorded in 2013 because the related software project was not completed as of December 31, 2013. The estimated aggregate annual amortization expense for each of the next two fiscal years is approximately $286,000, and approximately $215,000 in the following year.

- Definition

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

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