Quarterly report pursuant to Section 13 or 15(d)

4. Intangible Assets

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4. Intangible Assets
3 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

During the year ended September 30, 2015, the Company purchased software for $1,500,000. This software is being amortized over 84 months which is the term that the software is expected to produce revenue. The Company has the option to pay for the software in cash or in 800,000 shares of the Company’s common stock. The Company has until June 30, 2016 to pay for the software either in cash or common stock. At December 31, 2015, the Company had not made any payments towards the purchase of this software and has reflected the $1,500,000 purchase price for the software in accrued liabilities in the accompanying condensed consolidated balance sheet.

 

 

The following summarizes estimated future amortization expense related to intangible assets for the twelve month periods ending December 31:

 

  2016     $ 226,721  
  2017       216,112  
  2018       214,286  
  2019       214,286  
  2020       214,286  
  Thereafter       373,308  
        $ 1,458,999  

 

Total amortization expense related to intangible assets was $57,931 and $149,000 for the three months ended December 31, 2015 and 2014, respectively.