4. INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

4. INTANGIBLE ASSETS

Intangible assets consist of the following:

	September 30, 2016			December 31, 2015
Capitalized software development costs	$	552,503		$	535,023
Patents and trademarks		152,712			133,601
Accumulated amortization of patents and trademarks		(75,653	)		(54,026	)
	$	629,562		$	614,598

The Company capitalizes software development costs incurred from the time technological feasibility has been obtained until the product is generally released to customers. Amortization of capitalized software development costs begins when the products are available to customers and is computed using the straight-line method over the remaining estimated economic life of the product. Currently, the Company anticipates amortization of software development costs to commence in fiscal year 2017. The Company achieved technological feasibility with regard to its mobile phone technology during the fourth quarter of 2010. During the three months and nine months ended September 30, 2016 and 2015, software development costs of $17,480 and $0 were incurred and capitalized, respectively. No amortization expense for software development costs was recorded for the nine months ended September 30, 2016 and 2015.

The costs of patents and trademarks are amortized on a straight-line basis over 5 years from the date the patent or trademark is issued. Intangible assets with indefinite lives are tested for impairment on an annual basis or when the facts and circumstances suggest that the carrying amount of the assets may not be recovered. Amortization expense for patents and trademarks was $7,584 and $6,088 for the three months ended September 30, 2016 and 2015, respectively, and $21,627 and $16,093 for the nine months ended September 30, 2016 and 2015, respectively.