Software Assets, Net

6 Months Ended

Jun. 30, 2026

Finite Lived Intangible Assets Disclosure [Abstract]

Costs incurred are used to develop internal software applications and consist of mainly compensation and benefits. We capitalize software development costs upon the establishment of technological feasibility. During the three months ended June 30, 2026 and 2025, we capitalized approximately $0.5 million and $0.6 million and during the six months ended June 30, 2026 and 2025, we capitalized $1.0 million and $1.1 million, respectively, of software development costs. When the software is ready for use, these capitalized costs are amortized on a straight-line basis over the estimated useful life, estimated to be three years.

Software assets, net, consisted of the following:


(in thousands)	June 30, 2026		December 31, 2025
Software in development	$	1,875	$	1,069
Software assets in use	13,722		13,198
Less: accumulated amortization	(10,758)		(9,702)
Software assets in use, net	2,964		3,496
Software assets, net	$	4,839	$	4,565

The following summarizes the future amortization expense as of June 30, 2026:


(in thousands)
Six months ended December 31, 2026	$	995
2027	1,375
2028	501
2029	93
	$	2,964

Amortization expense was $0.6 million and $1.2 million for the three and six months ended June 30, 2026, respectively, and $1.0 million and $2.0 million for the three and six months ended June 30, 2025, respectively. The Company recorded no and $0.4 million in software development impairment during the three and six months ended June 30, 2026, respectively and no and $0.1 million in software development impairment for both three and six months ended June 30, 2025, respectively.