INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2017

NOTE 6.

INTANGIBLE ASSETS:

We amortize our intangible assets that have finite lives using the straight-line method. Amortization expense was $667,296 during the three months ended March 31, 2017. This amortization expense relates to customer lists and products capitalized on our balance sheet, which expire through 2020.

As of March 31, 2017, and December 31, 2016, capitalized intangible assets were as follows:

	March 31, 2017			December 31, 2016

Capitalized intangible assets		$	12,513,206		$	10,074,546
Accumulated amortization			667,296			1,309,842
Total intangible assets		$	11,845,910		$	8,764,704

Our amortization schedule is as follows:

Years ending December 31,	Amount

2017	$	2,258,388
2018		2,955,873
2019		2,727,968
2020		2,652,000
2021		1,251,681
Total	$	11,845,910

The Company has its own software products, namely Simple APO, Langer Index and IBP. Total costs incurred for developing these products during the three months ended March 31, 2017 was $0 and have been capitalized and are being amortized over the useful life of the software products.

The Company's intangible assets consist of the customer lists acquired from the Company's acquisition of WinHire Inc, Ameri Georgia, DCM, Virtuoso, Bigtech and ATCG. The products acquired from the acquisition of Linear Logics. Corp. and the amount spent on improving those products are also categorized as intangible assets and are being amortized over the useful life of those products.