Quarterly report pursuant to Section 13 or 15(d)

Intellectual Property

Intellectual Property

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

4. Intellectual Property

On July 3, 2014, five of the founding stockholders contributed the rights to certain intellectual property to the Company in exchange for the issuance of 4,101,822 shares with a fair value of $1,059,000. This contribution was recorded as an intangible asset with an offset to additional paid-in capital for $637,158 and deferred taxes for $421,842.

Intellectual property, net, is comprised of the following as of the dates indicated:

	March 31, 2016			December 31, 2015
Intellectual property	$	1,246,856		$	1,219,080
Accumulated amortization		(184,817	)		(153,967	)
Intellectual property, net	$	1,062,039		$	1,065,113

Amortization expense was $30,850 and $26,817 for the three months ended March 31, 2016 and March 31, 2015, respectively.