Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLES

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INTANGIBLES
3 Months Ended
Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLES
7 INTANGIBLES

 

License

 

Localization and implementation of the different software and technology modules is supported through a Localization Agreement. Under this agreement, at a cost of $215,000, the licensor allocated engineering and programming resources to the Company. The cost is being amortized over 5 years.

 

On May 1, 2015, Qpagos Corporation entered into a renewable ten-year license with the Licensor for the non-exclusive right to license technology to provide payment services. Subsequently, on November 1, 2015, the Company and the Licensor concluded an additional amendment to the License Agreement by which the Licensor agreed to the exclusivity to the Mexican market subject to the payment of $20,000 per year payable in quarterly installments, the first two such installments payable December 1, 2015. The agreement may be terminated early by the Licensor if Qpagos Corporation fails to comply with its terms and conditions.

 

Intangibles consisted of the following:

 

    March 31,
2017
    December 31,
2016
 
             
Software Localization Agreement   $ 215,000     $ 215,000  
                 
Total cost     215,000       215,000  
Less: accumulated amortization     (57,333 )     (46,583 )
Intangibles, net   $ 157,667     $ 168,417  

 

Amortization expense was $10,750 and $10,750 for the three months ended March 31, 2017 and 2016, respectively.