CAPITALIZED SOFTWARE

9 Months Ended

Jan. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 4 - CAPITALIZED SOFTWARE

Based upon the sale of BTX on November 26, 2014, the Company’s remaining balance of approximately $1,847,000 of capitalized software was included as part of the sale (see Note 1 – Basis of Presentation and Recent Developments) and, therefore, the capitalized software amount at October 31, 2014 was reduced to $0.

Previously, the Company performed reviews of the recoverability of such capitalized software costs. The impairment charge, which reduced the capitalized costs related to a specific software project to $1,847,000, was based on non-recurring Level 3 fair value measurement and which are based on unobservable inputs (which reflect the Company’s internal markets assumptions) that are supported by little or no market activity and that are significant to the fair value of the asset.

The gross carrying amounts and accumulated amortization related to the acquired intangible assets as of January 31, 2015 are as follows:

Capitalized Software at April 30, 2014, net	$	3,207,305
Additions acquired		2,279
Less: Sale of capitalized software		1,847,406
Less: amortization expense and Impairment loss		1,362,178
Capitalized Software at January 31, 2015, net	$	-

The Company incurred amortization expense associated with its finite-lived intangible assets of $0 for both the three months ended January 31, 2015 and 2014, and $535,000 and $0 for the nine months ended January 31, 2015 and 2014, respectively.

- 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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