Annual report pursuant to Section 13 and 15(d)

5. Software Development Costs

v3.19.1
5. Software Development Costs
12 Months Ended
Dec. 31, 2018
Research and Development [Abstract]  
5. Software Development Costs

5.  Software Development Costs

 

The Company has capitalized certain costs for software developed or obtained for internal use during the application development stage as it relates to specific contracts. The amounts capitalized include external direct costs of services used in developing internal-use software and for payroll and payroll-related costs of employees directly associated with the development activities.  

 

The following table presents details of our software development costs for the years ended December 31, 2018 and 2017:

 

    December 31, 2018   December 31, 2017
    Gross
Carrying
Amount
  Accumulated
Amortization
  Net Carrying
Amount
  Weighted
Average
Useful
Life
(Years)
  Gross
Carrying
Amount
  Accumulated
Amortization
  Net Carrying
Amount
  Weighted
Average
Useful
Life
(Years)
Software Development Costs   $ 1,781,902      $ (1,239,408)     $ 542,495      2      $ 886,539      $ (597,616)     $       288,923                  2
    $ 1,781,902      $ (1,239,408)     $ 542,495          $ 886,539      $ (597,616)     $       288,923    

 

Software development costs are being amortized on a straight line basis over their estimated useful life of two years.

 

During the years ended December 31, 2018, we recorded amortization expense for software development costs of $326,631 and $315,663, respectively which is included in depreciation and amortization in the consolidated statement of operations.

 

During the years ended December 31, 2018 and 2017, we recorded impairment charges of $0 and $417,816, respectively, related to our software development costs as a result of customer contracts that became impaired.

 

The estimated future amortization expense of software development costs as of December 31, 2018 is as follows:

 

 

Year ending December 31,   Amount
2019   $ 390,936   
2020     151,559   
2021     -   
2022     -   
2023     -   
Thereafter     -   
Total   $ 542,495