Consolidated Financial Statement Components

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Financial Statement Components

CONSOLIDATED FINANCIAL STATEMENT COMPONENTS

Depreciation, Amortization and Accretion

Depreciation, amortization and accretion expenses consisted of the following for the periods stated:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Dollars in thousands)	2021		2020		2021		2020

Depreciation
Leasehold improvements	$	18	$	13	$	52	$	43
Asset retirement costs	(22)		(161)		(66)		(482)
Paging and computer equipment	871		1,237		2,923		4,110
Furniture, fixtures and vehicles	65		81		185		232
Total depreciation	932		1,170		3,094		3,903
Amortization
Intangible assets	—		625		417		1,875
Capitalized software development costs	1,482		422		3,779		422
Total amortization	1,482		1,047		4,196		2,297
Accretion	154		118		462		353
Total depreciation, amortization and accretion expense	$	2,568	$	2,335	$	7,752	$	6,553

Accounts Receivable, Net

Accounts receivable was recorded net of an allowance of $1.4 million and $1.7 million at September 30, 2021, and December 31, 2020, respectively. Accounts receivable, net includes $8.1 million and $7.0 million of unbilled receivables at September 30, 2021, and December 31, 2020, respectively. Unbilled receivables are defined as the Company's right to consideration in exchange for goods or services that we have transferred to the customer but have not yet billed for, generally as a result of contractual billing terms.

Property and Equipment, Net

Property and equipment, net consisted of the following as of the dates stated:


(Dollars in thousands)	Useful Life (In Years)	September 30, 2021		December 31, 2020

Leasehold improvements	shorter of useful life or lease term	$	3,179	$	3,628
Asset retirement costs	1-5	3,717		3,717
Paging and computer equipment	1-5	90,684		92,608
Furniture, fixtures and vehicles	3-5	3,556		3,517
Total property and equipment		101,136		103,470
Accumulated depreciation		(93,302)		(95,655)
Total property and equipment, net		$	7,834	$	7,815

Capitalized Software Development

Capitalized software development costs at September 30, 2021, primarily consisted of costs related to the development of Spok Go and additions to its existing functionality. These costs are generally amortized on a straight-line basis over the estimated useful life of the asset, typically three years.

The net consolidated balance of capitalized software development consisted of the following at September 30, 2021:


(Dollars in thousands)	Useful Life (In Years)	Gross Carrying Amount		Accumulated Amortization		Net Balance

Capitalized software development	3	$	19,491	$	(4,853)	$	14,638

For the three and nine months ended September 30, 2021, capitalized software development costs were $2.6 million and $8.2 million, respectively. For the three and nine months ended September 30, 2020, capitalized software development costs were $2.9 million and $8.2 million, respectively.