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Platform Development

9 Months Ended

Sep. 30, 2018

6. Platform Development

Platform development costs as of September 30, 2018 and December 31, 2017 are summarized as follows:

	September 30, 2018		December 31, 2017
Platform development costs	$	6,314,528	$	3,145,308
Less accumulated amortization		(1,783,532)		(512,251)
Net platform development costs	$	4,530,996	$	2,633,057

A summary of platform development cost activity for the nine months ended September 30, 2018 is as follows:

Platform development at January 1, 2018	$	3,145,308
Costs capitalized during the period:
Payroll-based costs		1,660,331
Stock based compensation costs		1,508,889
Platform development at September 30, 2018	$	6,314,528

Amortization expense for the platform development costs for the three months ended September 30, 2018 and 2017, was $488,565 and $173,000, respectively. Amortization expense for the platform development costs for the nine months ended September 30, 2018 and 2017, was $1,271,281 and $226,000, respectively. Amortization expense for platform development is included in cost of revenues in the condensed consolidated statements of operations.