4. INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

Intangible assets consist of the following:

	September 30, 2017			December 31, 2016
Capitalized software development costs	$	552,503		$	552,503
Patents and trademarks		168,564			159,664
Accumulated amortization of patents and trademarks		(107,760	)		(83,289	)
	$	613,307		$	628,878

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 2018. The Company achieved technological feasibility with regard to its mobile phone technology during the fourth quarter of 2010. No software development costs were incurred and capitalized during the three months and nine months ended September 30, 2017, and no amortization expense for software development costs was recorded for the three and nine months ended September 30, 2017 and 2016.

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 $8,429 and $7,584 for the three months ended September 30, 2017 and 2016 and $24,471 and $21,627 for the nine months ended September 30, 2017 and 2016, respectively.