Mobivity Holdings Corp. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Software Development Costs

Software Development Costs

12 Months Ended

Dec. 31, 2017

Software Development Costs [Abstract]

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, 2017 and 2016:


	December 31, 2017							December 31, 2016
	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	$	1,277,057	$	(913,280)	$	363,777	2	$	886,539	$	(597,616)	$	288,923	2
	$	1,277,057	$	(913,280)	$	363,777		$	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, 2017, we recorded amortization expense for software development costs of $315,663 and $469,937, respectively which is included in depreciation and amortization in the consolidated statement of operations.

During the years ended December 31, 2017 and 2016, 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, 2017 is as follows:


Year ending December 31,	Amount
2018	$	283,833
2019		79,944
2020		-
2021		-
2022		-
Thereafter		-
Total	$	363,777

- Definition

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

+ References + Details