Quarterly report pursuant to Section 13 or 15(d)

Software Development Costs

v3.20.2
Software Development Costs
9 Months Ended
Sep. 30, 2020
Research and Development [Abstract]  
Software Development Costs

4. 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 as of September 30, 2020 and December 31, 2019:

 

   

Balance at

December 31,

2019

    Additions     Amortization    

Balance at

September 30,

2020

 
Software Development Costs   $ 696,667     $ 196,997     $ (402,211 )   $ 491,453  
    $ 696,667     $ 196,997     $ (402,211 )   $ 491,453  

 

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

 

Amortization expense for software development costs was $141,196 and $107,258 for the three months ended September 30, 2020 and 2019, respectively.

 

Amortization expense for software development costs was $402,211 and $318,280 for the nine months ended September 30, 2020 and 2019, respectively.

 

The estimated future amortization expense of software development costs as of September 30, 2020 is as follows:

 

Year ending December 31,   Amount  
2020   $ 115,894  
2021     315,589  
2022     59,970  
2023     -  
2024     -  
Thereafter     -  
Total   $ 491,453