Quarterly report pursuant to Section 13 or 15(d)

Intellectual Property

Intellectual Property

9 Months Ended

Sep. 30, 2015

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 equity for $637,158 and deferred taxes for $421,842.

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

	September 30, 2015			December 31, 2014
Intellectual property	$	1,079,505		$	1,072,679
Accumulated amortization		(124,733	)		(44,125	)
Intellectual property, net	$	954,772		$	1,028,554

Amortization expense was $0, $26,975 and $80,608 for the three months ended September 30, 2014 and for the three and nine months ended September 30, 2015, respectively.