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

Annual report pursuant to Section 13 and 15(d)

5. Software Development Costs

5. Software Development Costs

12 Months Ended

Dec. 31, 2019

5. 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, 2019 and 2018:

December 31, 2019							December 31, 2018

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)
$	2,245,811	$	(1,549,144)	$	696,667	2		$	1,781,902	$	(1,239,408)	$	542,494	2
$	2,245,811	$	(1,549,144)	$	696,667			$	1,781,902	$	(1,239,408)	$	542,494

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, 2019 and 2018, we recorded amortization expense for software development costs of $309,736 and $326,631, respectively which is included in depreciation and amortization in the consolidated statement of operations.

During the years ended December 31, 2019 and 2018, we recorded no impairment charges related to our software development costs.

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

Year ending December 31,	Amount
2019	$	479,188
2020		217,092
2021		398
2022		-
2023		-
Thereafter		-
Total	$	696,667