4. INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 4 – INTANGIBLE ASSETS

Intangible assets consist of the following:

	March 31, 2018			December 31, 2017
Capitalized software development costs	$	262,243		$	262,243
Patents and trademarks		168,564			168,564
Accumulated amortization of patents and trademarks		(120,227	)		(114,097	)
	$	310,580		$	316,710

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 ended March 31, 2018 and 2017, and no amortization expense for software development costs was recorded for the three months ended March 31, 2018 and 2017.

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 $6,130 and $7,984 for the three months ended March 31, 2018 and 2017, respectively.