Mobivity Holdings Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

4. Software Development Costs

4. Software Development Costs

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018:

	Balance at December 31, 2018		Additions		Amortization		Balance at March 31, 2019
Software Development Costs	$	542,495	$	139,570	$	(111,399)	$	570,666
	$	542,495	$	139,570	$	(111,399)	$	570,666

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 $111,399 and $79,016 for the three months ended March 31, 2019 and 2018, respectively.

The estimated future amortization expense of software development costs as of March 31, 2019 is as follows:

Year ending December 31,	Amount
2019	$	265,578
2020		266,993
2021		38,095
2022		-
2023		-
Thereafter		-
Total	$	570,666