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Software, Net
 3 Months Ended
Jun. 30, 2024
Software, Net [Abstract]  
Software, Net

9. Software, Net

 

Software consisted of the following as of the periods indicated:

 

  

As of

June 30,
2024

  

As of

December 31,
2023

 
Software  $1,585,000   $1,081,000 
Retail Platform   2,646,000    635,000 
Total Software   4,231,000    1,716,000 
Less accumulated amortization – Software   (777,000)   (284,000)
Less accumulated amortization – Retail Platform   
—
    
—
 
Total Software, net  $3,454,000   $1,432,000 

 

The Company contracted with a technology vendor in the fourth quarter of 2023 to develop a new retail platform for the Company’s customers and integrate this platform into the Company’s operations (“Retail Platform”). The total software development expense related to this project was $2,646,000 as of June 30, 2024, all of which was capitalized. Amortization for the Retail Platform will commence once it is placed in service, which is expected to be in the fourth quarter of 2024.

 

Total amortization of software was $123,000 and $105,000 for the three months ended June 30, 2024 and 2023, respectively. Total amortization of software was $232,000 and $214,000 for the six months ended June 30, 2024 and 2023, respectively.

 

As of June 30, 2024, the Company estimates the following future amortization of software assets:

 

Year  Amount 
2024  $437,000 
2025   1,257,000 
2026   1,078,000 
2027   682,000 
Total  $3,454,000 

 

Transaction with J2 Financial Technology

 

On January 18, 2024, STCH entered into a Purchase Agreement (the “Purchase Agreement”) with J2 Financial Technology, Inc., d/b/a “Guild”, a Delaware corporation (“J2 Financial”).

 

Under the Purchase Agreement, STCH purchased a mobile self-directed trading app for the total purchase price of $385,000. The purchase price consisted of $35,000 of cash and 200,000 restricted shares of the Company’s common stock (priced at the historical 30-day moving average as of January 18, 2024) worth approximately $350,000. This purchase is part of the software related to the Retail Platform and recorded in the line item “Software, net” on the statements of financial condition.