Annual report pursuant to Section 13 and 15(d)

INTANGIBLES

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INTANGIBLES
12 Months Ended
Dec. 31, 2018
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, the Company entered into a 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 the Company fails to comply with its terms and conditions. 

 

Intangibles consisted of the following: 

 

    December 31,
2018
    December 31,
2017
 
             
Software Localization Agreement   $ 215,000     $ 215,000  
Total cost     215,000       215,000  
Less: accumulated amortization     (132,583 )     (89,583 )
Intangibles, net   $ 82,417     $ 125,417  

  

Amortization expense was $43,000 for the years ended December 31, 2018 and 2017.