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

Quarterly report pursuant to Section 13 or 15(d)

Software Development Costs

Software Development Costs

9 Months Ended

Sep. 30, 2015

Software Development Costs [Abstract]

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 as of September 30, 2015 and December 31, 2014:



	Balance at December 31, 2014		Additions		Amortization		Balance at September 30, 2015
Software Development Costs	$	-	$	489,850	$	(77,055)	$	412,795
	$	-	$	489,850	$	(77,055)	$	412,795

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 $50,262 for the three months ended September 30, 2015.

Amortization expense for software development costs was $77,055 for the nine months ended September 30, 2015.

The estimated future amortization expense of software development costs as of September 30, 2015 is as follows:



Year ending December 31,	Amount
2015	$	61,230
2016		244,920
2017		106,645
2018		-
2019		-
Thereafter		-
Total	$	412,795

- 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