GOODWILL AND INTANGIBLE ASSETS, NET

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

NOTE 3 –GOODWILL AND INTANGIBLE ASSETS, NET

Intangible assets consist of the following:

	September 30, 2015		December 31, 2014
	(unaudited)		(audited)
HDR	$	180,304	$	170,394
SRIO		129,483		121,730
Payment Gateway SW		305,355		-
Tranxa Transaction / Switch SW		386,030		-
Mobile Banking SW		269,877		-
Terminal Manager SW		185,114		-
Phobos Management SW		122,583		-
New product development		35,847		10,818
Patents and Licenses		218,097		200,000
	$	1,832,690	$	502,942
Less: accumulated amortization		138,003		81,168
Intangible Assets, Net	$	1,694,687	$	421,774

Intangible assets consist of legal and global patent registration costs related to the Company’s switch / transaction software and 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 will require an additional 6 months and approximately $200,000 to productize into a device that can be sold to Government, or Enterprise customers.  The costs associated with the development of this new product are recorded in intangible assets in the accompanying consolidated balance sheet and are reflected as new product development above. The patents and licenses are acquired upon the acquisition of Multipay S.A. (the “Subsidiary”). The Subsidiary holds patents and licenses in related to payment processing technologies.

In conjunction with the acquition of MultiPay we acquired a $19,436 goodwill. Upon acquisition of and IDGS LATAM, we recognized goodwill at $8,916 which derived from the excess of cash consideration over net asset acquired (See Note 8).