Annual report pursuant to Section 13 and 15(d)

Software Development Costs

v3.7.0.1
Software Development Costs
12 Months Ended
Dec. 31, 2016
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, 2016 and 2015:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

December 31, 2016

 

December 31, 2015

 

 

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

 

$

886,539 

 

$

(597,616)

 

$

288,923 

 

 

$

736,666 

 

$

(138,286)

 

$

598,380 

 

 

 

$

886,539 

 

$

(597,616)

 

$

288,923 

 

 

 

$

736,666 

 

$

(138,286)

 

$

598,380 

 

 





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, 2016, we recorded amortization expense for software development costs of $469,937 and $138,286,  respectively which is included in depreciation and amortization in the consolidated statement of operations.



During the years ended December 31, 2016 and 2015, we recorded impairment charges of $417,816 and $0, 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, 2016 is as follows:





 

 

 

Year ending December 31,

 

Amount

2017

 

$

184,642 

2018

 

 

100,832 

2019

 

 

3,449 

2020

 

 

 -

2021

 

 

 -

Thereafter

 

 

 -

Total

 

$

288,923