NOTE 5 — INTANGIBLE ASSETS

For the years ended December 31, 2019 and 2018, the Company invested in software development costs in the amounts of $307,207 and $404,890 respectively and acquired a domain name in 2018 in the amount of $10,000.

Patents, technology and other intangibles with contractual terms are generally amortized over their estimated useful lives of ten years. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. Due to the Company’s history of operating losses, intangible assets were evaluated for impairment and no impairment losses were incurred during the years ended December 31, 2019 and 2018, respectively.

Software development costs are amortized over their estimated useful life of three years.

Intangible assets as of December 31 consisted of the following:


	2019		2018
Patents	$	3,697,709	$	3,697,709
Capitalized software development		1,717,466		1,410,259
Domain name		10,000		10,000
Accumulated amortization		(3,709,958)		(3,056,564)
Intangible assets, net	$	1,715,217	$	2,061,404

Amortization expense for patents totaled $374,631 and $374,632 for the years ended December 31, 2019 and 2018, respectively. Amortization expense for software development totaled $278,763 and $143,317 for the years ended December 31, 2019 and 2018, respectively.

Total amortization expense totaled $653,394 and $517,949 for the years ended December 31, 2019 and 2018, respectively.