Quarterly report pursuant to Section 13 or 15(d)

4. Software Development Costs

v3.20.1
4. Software Development Costs
3 Months Ended
Mar. 31, 2020
Research and Development [Abstract]  
4. 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 as of March 31, 2020 and December 31, 2019:

 

    Balance at
December 31,
2019
  Additions   Amortization   Balance at
March 31,
2020
Software Development Costs   $ 696,667      $ 15,592      $ (130,212)     $ 582,047   
    $ 696,667      $ 15,592      $ (130,212)     $ 582,047   

 

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 $130,212 and $111,399 for the three months ended March 31, 2020 and 2019, respectively.

 

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

 

Year ending December 31,    Amount
2020   $ 354,826   
2021     224,892   
2022     2,329   
2023     -   
2024     -   
Thereafter     -   
Total   $ 582,047