Property, Plant, and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure

NOTE 4 - PROPERTY AND EQUIPMENT

Property and equipment as of December 31, 2022 and 2021 consisted of the following (in thousands):


	Estimated Useful Life (in years)	2022		2021
Furniture and equipment	2 to 5	$	7,552	$	6,935
Software development costs	3	18,678		14,449
Software	2 to 5	2,808		2,808
Leasehold improvements	2 to 5	1,878		1,638
Gross property and equipment		30,916		25,830
Less: accumulated depreciation and amortization		(19,477)		(16,885)
Property and equipment, net		$	11,439	$	8,945

We record the amortization of our finance leases as depreciation expense on our Consolidated Statements of Comprehensive Income (Loss). Depreciation and amortization expenses relating to property and equipment were $4,044 and $3,808 for the years ended December 31, 2022 and 2021, respectively.

We acquired software development costs from prior acquisitions and we continue to invest in software development. We are developing products which we intend to offer utilizing software as-a-service (“SaaS”). We follow the guidance of ASC 350-40, Intangibles—Goodwill and Other—Internal-Use Software, for development costs related to these new products. Costs incurred in the planning stage are expensed as incurred while costs incurred in the application and infrastructure stage are capitalized, assuming such costs are deemed to be recoverable. Costs incurred in the operating stage are generally expensed as incurred except for significant upgrades and enhancements. Capitalized software costs are amortized over the software’s estimated useful life, which management has determined to be three years. During the years ended December 31, 2022 and 2021, we capitalized $4,228 and $4,141 of software development costs, respectively.