NOTE 5 — DEFERRED COSTS

Effective January 1, 2018, the Company capitalizes new and 12-month or longer renewal sales commission payments in the period a customer contract is obtained, and payment is received; and the commissions are amortized consistent with the transfer of the goods or services to the customer over the expected period of benefit, which we have deemed to be the contract term.

Such commissions are amortized over the greater of contract term or technological obsolescence period when the underlying contracted products are technology-based, such as for the SaaS-based platforms, or the contract term when the underlying contracted products are not technology-based. The table below summarizes the activity within the deferred commission costs account, during the nine months ended September 30, 2019:


			Commission
	December 31,		Costs		Commission		September 30,
	2018		Deferred		Amortized		2019
Deferred costs, short term	$	176,006	$	196,796	$	(174,841)	$	197,961
Deferred costs, long term		93,790		62,996		—		156,786
Deferred commission costs	$	269,796	$	259,792	$	(174,841)	$	354,747

During the three and nine months ended September 30, 2019, the Company deferred an aggregate of $123,054 and $259,792, respectively, for commissions paid. Amortization of deferred costs for the three and nine months ended September 30, 2019 was $66,766 and $174,841, respectively.

During the nine months ended September 30, 2018, the Company deferred an aggregate of $201,142 for commissions paid and reclassified from equity $80,153 previously paid amounts that were originally expensed as commissions. Amortization of deferred costs for the three and nine months ended September 30, 2018 was $34,214 and $59,705, respectively.