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9. CLOUD COMPUTING SERVICE CONTRACT | 9 Months Ended
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Sep. 30, 2020
Cloud Computing Service Contract |
CLOUD COMPUTING SERVICE CONTRACT | In May 2020 we entered into a cloud computing service contract. The contract provides for annual payments in the amount of $30,409 and has a term of 5 years. The annual contract payments are capitalized as a prepaid expense and amortized over a twelve-month period. Amortization expense for the three and nine months ended September 30, 2020 was $7,602 and $10,143, respectively. We have incurred implementation costs of $37,573 in connection with the cloud computing service contract which have been capitalized in prepaid expenses as of September 30, 2020. In accordance with ASU No. 2018-15, such implementation costs will be amortized once the cloud-based service contract is placed in service.

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