Annual report pursuant to Section 13 and 15(d)

Software Development Costs

v3.21.1
Software Development Costs
12 Months Ended
Dec. 31, 2020
Software Development Costs [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 for the years ended December 31, 2020 and 2019:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

December 31, 2019

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)

$

2,266,272 

 

$

(1,826,364)

 

$

439,908 

 

 

$

2,245,811 

 

$

(1,549,144)

 

$

696,667 

 

$

2,266,272 

 

$

(1,826,364)

 

$

439,908 

 

 

 

$

2,245,811 

 

$

(1,549,144)

 

$

696,667 

 

 



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, 2020 and 2019,  we capitalized $266,365 and 539,932 respectively of software development.  We recorded amortization expense for software development costs of $518,087 and $309,736, respectively which is included in depreciation and amortization in the consolidated statement of operations.



During the years ended December 31, 2020 and 2019, we recorded impairment charges of $8,886 and $0, respectively related to our software development costs.



The estimated future amortization expense of software development costs as of December 31, 2020 is as follows:







 

 



 

 

Year ending December 31,

Amount

2021

 

345,643 

2022

 

94,265 

2023

 

 —

2024

 

 —

2025

 

 —

Thereafter

 

 —

Total

$

439,908