INTANGIBLE ASSETS, NET

9 Months Ended

Sep. 30, 2014

NOTE 3 – INTANGIBLE ASSETS, NET

Intangible assets consist of the following:


		September 30, 2014		December 31, 2013
		(Unaudited)

HDR	$		288,143		$	146,061
SRIO			122,746			102,259
New product development			10,818			-
Software			200,000			200,000
			621,707			448,320
Less amortization			(76,102)			(55,819)

	$		545,605		$	392,501

Intangible assets consist of legal and global patent registration costs related to the Company's technology HDR (Handheld biometric mobile devices) and SRIO (Biometric wallet devices). Intangible assets are amortized over ten years.

The Company decided to refocus its research and development on its next generation of HDR Intelligent Accessory platform instead of developing the new HDR+. To achieve this it has contracted a Mechanical Designer and H/W and Embedded S/W Engineer to complete this task. The project is 70% completed to date and will require an additional 3 months and approximately $80,000 to productize into a device that can be sold to Government, or Enterprise customers. Up to September 30, 2014, the Company has invested $130,981 towards the development of this new product.